'Fit for Future'

‘Fit for Future’

DRAFT LONG TERM PLAN FOR THE TEN YEARS 2018-2028 CONTENTS

Overview:...... 1 Financial Overview and Strategy:...... 30 Financials:...... 110

Vision, purpose, values, strategy...... 2 Forecast Statement of Comprehensive Revenue Financial Snapshot...... 31 and Expenses...... 111 Welcome to our 2018-2028 Long Term Plan...... 3 Financial Strategy ...... 34 Forecast Movements in Equity...... 112 From the Mayor, Chief Executive...... 4 Forecast Statement of Financial Position...... 113 Mayor, Councillors, Community Board...... 5 Community Outcomes:...... 44 Forecast Statement of Cashflows...... 115

Setting the Scene:...... 6 Council Activities:...... 53 Notes to the Financial Statements...... 117

About Local Government...... 7 Regulatory services...... 55 Forecast Statement of Capital Expenditure...... 123

About the Long Term Plan...... 8 Roading and transport...... 59 Forecast Funding Impact Statement...... 124

Overview of our district...... 9 Water supplies...... 67 Rating Examples...... 135

Major Towns...... 10 Wastewater/sewerage...... 75 Assumptions...... 137

Strategic Overview...... 11 Stormwater...... 79 Forecast Reserve Funds...... 144

Major Assumptions from our last plan...... 12 Solid Waste...... 83 Statement of Accounting Policies...... 146

Where we are at, where are we heading?...... 13 Professional services business unit...... 86 Infrastructure Strategy:...... 153 Maori Contribution to Decision Making...... 14 Community services...... 88

Governance, representation...... 92 Policies:...... 173 Key Issues affecting the plan:...... 15 Customer services, support services...... 96 Significance and Engagement Policy...... 174 Proposed Holcim property portfolio purchase...... 16 Property...... 99 Revenue and Financing Policy...... 177 District revitalisation...... 20 Council controlled organisations...... 105 Our water, we are almost there!...... 24 Other Council controlled organisations...... 107 Our vital links, Karamea Highway...... 26

Climate change, it affects us all...... 27

The future of our Port, Westport Harbour...... 29 OVERVIEW

INCLUDES:

Vision, purpose, values, strategy...... 2

Welcome to our 2018-2028 Long Term Plan...... 3

From the Mayor and Chief Executive...... 4

Mayor, Councillors and Community Board...... 5

Buller District Council Draft Long Term Plan 2018-2028 1 VISION, PURPOSE, VALUES, STRATEGY

Vision: ‘Fit for Future’ Values: WHERE THE BULLER COMMUNITY IS GOING: HOW WE WORK: Buller is ‘Fit for future’ – a resilient, safe and thriving community Community driven - We are responsive to our community and make a difference now and for future generations One team - Shared direction, shared effort, quality outcomes. Future focused - We seek solutions that are fit for the future. Integrity - Open,honest and equitable in service, decisions and action. We care - our social and environmental responsibility - About people and place.

Purpose: Key Strategies: HOW WE SERVE THE PEOPLE OF BULLER: HOW WE ACHIEVE OUR VISION: Providing quality, resilient and affordable services and infrastructure to meet the current 1. Resilient – Building and promoting resilience in community, services and infrastructure. and future needs of our communities. 2. Growing - Facilitating growth and a transition to a diversified, resilient and sustainable Providing responsive leadership and engaging with our communities to achieve positive economy. economic, social, cultural and environmental outcomes. 3. Quality infrastructure - Providing reliable and sustainable infrastructure that meets the needs of current and future generations. 4. Liveable - Investing in our towns to ensure we are an attractive district to live, work, invest and play. 5. Affordable - Growing our non-rates income so rates are affordable to all residents.

2 Buller District Council Draft Long Term Plan 2018-2028 WELCOME TO OUR 2018-2028 DRAFT LONG TERM PLAN

The Long Term Plan states the planned vision for the District, the Community Outcomes, the “The Plan states the services and activities Council is undertaking to contribute to those Outcomes, and the costs of vision and community Council providing those services and activities outcomes for the Long Term Plan over the next 10 years. district and the & Consultation Document It is important to note that the financial information contained services and activities in this Long Term Plan is forecast information based on the Reviewed every assumptions which Council reasonably expects to occur. that Council is three years Actual results achieved are likely to vary from the information undertaking”. Lets you know what Council presented and these variations may at times be reasonably is doing and why. large. That being said, we have endeavoured to make sure that our financial forecasts are as accurate as we can reasonably make them based on the information we currently have. Community “The Long Term Plan outlines the activities and Annual Plan services Council is planning to provide over the Outcomes Produced every non- coming 10-years”. Knowing the environment Long Term Plan year in which people live. The outcomes identified by the Council and community Lets you know how Council’s indicate how the District should promote community well- Knowing what the community work is going to be paid for and people want. being - socially, culturally, economically and environmentally. each year, and any variances from the Long Term Plan The end result, is an all-encompassing document that outlines the community’s expectations and shows how Council, with the help of the community and other organisations, will work together to achieve community well-being and the outcomes. The Long Term Plan must be reviewed and re-evaluated once every three years. Annual Report Between the three yearly reviews, Council produces an Annual Produced every year Plan, outlining what activities and services Council will be Lets you know whether undertaking in the following year and any changes from the the Council did what Long Term Plan. Each year Council produces an Annual Report it said it would do which outlines what Council actually did that year compared to what it had planned to do in the Long Term Plan or Annual Plan.

Buller District Council Draft Long Term Plan 2018-2028 3 FROM THE MAYOR, CHIEF EXECUTIVE

We are delighted to present Council’s 2018-2028 draft Long Term Plan. Considerable work has been done over the last 12 months to We thank the community for engaging with us to develop this ensure that we can present you with a document that is ‘Fit for plan, and encourage you to attend the public meetings and Future’ and balances the need for effective service delivery, drop in sessions to be held throughout the District and invite resilience, and quality infrastructure and amenities with feedback during the submission process. This will be valued affordability and financial sustainability in the future input and will give Councillors a much clearer picture of your priorities, dreams and aspirations for our District. It is only by Despite the economic downturn over the past few years things working together that we can achieve our vision and make are slowly starting to trend upwards in the right direction. Buller ‘Fit for Future’. We have many new and exciting opportunities in our short to medium term future that have the potential to transform our district. This strategy and plan is designed to facilitate and support this transformation so Buller can transition to a more resilient and diverse economy. Key to this is ensuring that the Buller District is desirable and attractive place to live, work, invest and visit. You will see some key projects linked to this transformation included that we want specific feedback on, including the Holcim investment opportunity and the Westport Revitalisation Project.

Garry Howard Andy Gowland-Douglas Mayor, Buller District Chief Executive

4 Buller District Council Draft Long Term Plan 2018-2028 MAYOR, COUNCILLORS, COMMUNITY BOARD

Buller District Council Draft Long Term Plan 2018-2028 5 SETTING THE SCENE

INCLUDES:

About Local Government...... 7

About the Long Term Plan...... 8

Overview of our District...... 9

Major Towns...... 10

Strategic Overview...... 11

Major Assumptions from our last plan...... 12

Where we are at, where are we heading?...... 13

Maori Contribution to Decision Making...... 14

6 Buller District Council Draft Long Term Plan 2018-2028 | SETTING THE SCENE | ABOUT LOCAL GOVERNMENT

The purpose of the New Zealand government, (2) In this Act, good quality in relation to local infrastructure, Figure 1: local public services and performance of regulatory Local and Central Government - working together also referred at as “NZ Inc”, is to protect and functions, means infrastructure, services and serve the people of New Zealand and to provide performance that are – essential services. Local government is the part (a) efficient; and of government most New Zealander’s interact (b) effective: and with during their daily lives. (c) appropriate to present and anticipated future circumstances. The local government organisations that serve the Buller Figure 2 shows the different types of local government Source: District include the Buller District Council and the West organisations in New Zealand. Buller District Council is one of the Coast Regional Council. Each organisation is responsible for Briefing to 61 territorial authorities in New Zealand. The West Coast Regional the Incoming managing, regulating and delivering different aspects of Council is one of 11 regional councils. services and regulations for the communities of Buller, and Minister the rest of the West Coast. The Buller District Council works Types of services local councils deliver include funding, of Local collaboratively with the other West Coast local government providing and maintaining: safe drinking water, and Government, organisations for the good of the communities of the whole wastewater and stormwater management infrastructure; public Department region. transport; ports; airports; local roads and bridges; community of Internal facilities such as public toilets, sports and recreation centres, Affairs 2017. The Local Government Act 2002 is the law that sets out social housing, parks and reserves, cemeteries; and civil the requirements for local government in New Zealand defence and emergency management; and many more. They (www.legislation.govt.nz). It applies to local government also regulate land use planning, building, noise control, dog organisations and to the communities they serve. control, gaming, liquor licensing and so on. Figure 2: New Zealand Local Government - facts and figures Figure 1 shows some of the areas where central and local This document, the Long Term Plan, is a 10-year plan for the government work together to deliver services for New Zealanders. Buller and sets out how the Buller District Council plans to The purpose of local government is defined in section 10 of the serve and govern the community of the Buller District. Local Government Act 2002: (1) (a) to enable democratic local decision-making and Schedule 10 of the Local Government Act 2002 sets out what action by, or on behalf of, communities; and Long Term Plan’s must include, and the processes the Council (b) to meet the current and future needs of must follow. communities for good quality local infrastructure, Part of the process is the community having its say on what the local public services, and performance of regulatory Buller District Council is planning. There is a period for public functions in a way that is most cost-effective for submissions so the community view can be taken into account households and businesses. before the Council finalises the Plan. The Council will also release a Consultation Document to the public along with the Draft Long Term Plan to help the communities and businesses Source: have their say. Briefing to the Incoming Minister of Local Government, Department of Internal Affairs 2017.

Buller District Council | Draft Long Term Plan 2018-2028 7 | SETTING THE SCENE | ABOUT THE LONG TERM PLAN

As the name suggests, the Long Term Plan is a strategic document put together by Council in consultation with the community, to guide our District towards 2028. The Plan ties the threads of everything the Council does, and lays out the pathway for the next 10-years. It links the following into this one overall guiding document: yy Vision for the District yy Community outcomes yy Services and activities that Council will undertake to contribute to those outcomes yy Likely costs of the Council providing those services and activities over the next 10 years The Long Term Plan is reviewed every three years. In the years between the reviews, the Council produces Annual Plans. Annual Plans generally modify Council budgets based on new information that has been received, but Council is still required to report its performance to the community based on the things it said it would do in its Long Term Plan.

8 Buller District Council | Draft Long Term Plan 2018-2028 | SETTING THE SCENE | OVERVIEW OF OUR DISTRICT

The Buller District Council is the territorial History The natural environment authority for the northern West Coast, Buller and The Buller District was established on the 1st November 1989 The district comprises of 8,574 square kilometres from Kahurangi Inangahua. from the former Westport Borough Council (established 1873), Point in the North to the Punakaiki River in the south and east to the Buller County Council (established 1876) and the Inangahua summit of the Lewis Pass. County Council (established 1876). The Buller District is a diverse and beautiful place. With an The rateable area of the district is only 18% with the majority of the enviable climate, laid back lifestyle and close knit community The settlements developed on the back of extractive industries area being Conservation Estate. environment, the Buller District is a great place to live, work gold initially followed by coal. The town of Westport is a The West Coast is an area of extremes; wild country, wild weather and and visit. Tourism continues to be the fastest growing sector in river port that was used extensively through its history for geologicaly active – all of which make this a unique environment. the district and the region. the transport of coal. The Denniston Incline was considered Ecosystems are unique, and biodiversity is rich and internationally one of the engineering wonders of the world with its unique Stretching from Punakaiki in the south to Karamea in the north, recognised. and inland as far as Springs Junction, the District is home to a transportation system that used gravity to transport coal for population of 10,150 as at November 2017. As of 1 July 2018 the plateau to the railway at Conns Creek. The area because of its location adjacent to the Southern Alps captures a high rainfall varying from about two metres on the coastal the resident population is likely to be in the vicinity of 10,000 Agriculture has also been a hugely important factor in the area, to around 5 metres on the Stockton and Denniston plateau and persons. development of the region, with the district being particularly about 3 metres at Springs Junction in the Southern Alps. The district boasts two national parks (Kahurangi in the north suited to dairy farming. and Paparoa in the south), one forest park (Victoria Forest Natural hazards are part of life here and the communities are Park) and two heritage areas, all offering the opportunity to resilient; and the Council factors this resilience into the way they experience peace and tranquillity or excitement and adventure. manage infrastructure and its planning. The Old Ghost Road is an iconic mountain bike trail and tramping experience that traverses part of Kahurangi National Park. Like the whole of the West Coast, most of the Buller District is Crown Conservation land. Because of this the Council works closely with the Department of Conservation to maximise the visitor experience and provide the infrastructure and services they need to stay safe and enjoy what the district has to offer. Visitors come to Buller to enjoy the natural resources and heritage areas, with walking, tramping, mountain biking, and other adventure persuits being the main activities. When they come they stay in the district and spend their money in our towns and communities all contributing to our local economy. Must see places in the Buller include: the Heaphy Track traversing the Kahurangi National Park (one of the 10 Great Walks); the Oparara Arches, the Paparoa National Park; the Pancake Rocks and Blowhole walk at Punakaiki, the Charming Creek walkway, the Cape Foulwind area and the Denniston Historical Heritage icon sites (www.doc.govt.nz). Other important areas include the Old Ghost Road trail for trampers and mountain bikers, and the new Paparoa Track, which is New Zealand's 10th Great Walk. This will also connect with the Pike29 Memorial Track, and a memorial site and interpretation centre due for completion in April 2019.

Buller District Council | Draft Long Term Plan 2018-2028 9 | SETTING THE SCENE | MAJOR TOWNS

nearby goldfields, Reefton became the first town in the southern WESTPORT hemisphere to have a public supply of electricity in 1888. The ASSUMPTIONS Westport is the West Coast’s second biggest town and is stable population of around 1,100 are proud of the town’s historic In preparing Councils strategy, issues and financial information Buller’s commercial and administration centre. Situated at past and the township features many heritage buildings. contained in the Long Term Plan, Council have had to make a the mouth of the Buller / Kawatiri River, it is home to around number of assumptions. The assumptions underpinning this The main employment opportunities have changed over time but Plan are outlined on pages 137-143. 5,000 residents. Westport has a commercial fishing port now the area has dairying, coal mining, gold mining and tourism. and an airport, with daily flights to and from the capital city, Reefton is the main service town to these industries. Wellington. Reefton, is adjacent to the Victoria Forest Park which means CHANGES TO POLICIES Westport provides an employment base for a wide range of it has close access to a wide-range of historic tracks and sites Policies that Council intends to amend and are required to industries including mining, farming, fishing, horticulture, that provide extensive mountain biking, tramping and walking consult on are detailed within this document. Council has technology and tourism. However some of these employers options. The rivers provide some of the best brown trout fishing included its Revenue and Financing Policy which contains are in the process of change. Cyclical changes in the mining in New Zealand. a number of minor amendments. The Significance and industry have led to a contraction phase in this sector. New Engagement Policy has been updated since the last Long Term central government direction indicates there will be no Plan in 2015. new mines on Conservation land. Existing mines will be PUNAKAIKI able to continue to operate. This includes some proposed Nestled at the foot of the Paparoa National Park, the small coast SIGNIFICANT CHANGES IN LAND USE developments that have commenced the permitting process. town of Punakaiki is home to around 70 full time residents. The While the impact of global commodity prices on primary industries is acknowledged, mining and dairying are expected to continue to be Westport is the base for tourists to experience the many town is midway between Westport and Greymouth on the Coast important land uses in Buller due to the natural resources present in attractions of the nearby coal plateaus of Denniston and Road which regularly is cited in tourism publications as one of the District, however mining is expected to continue to decline over Stockton, historic gold workings and the beauty of the the spectacular coastal highways. Punakaiki is one of the most time. rainforest. visited conservation areas in New Zealand, with the Pancake Rocks being the iconic attraction. Outside of the main townships, much of the District is zoned for rural KARAMEA Punakaiki offers the opportunity to enjoy craft shops, cafes use. This zoning allows for traditional rural activities such as farming and some amazing beachside accommodation. One of the and horticulture, while recognising that the resources for activities An hour and a half drive north from Westport is Karamea. A most popular attractions is the Punakaiki pancake rocks and such as mining and quarrying may also be present in these areas. popular tourist destination, Karamea boasts the spectacular blowholes walk. A short 20 minute loop walk, it is one of the Oparara basin with its limestone arches and caves and the Within the main townships, residential and commercial activities are most accessible tracks available and is suitable for wheelchairs expected to continue to be the dominant land uses. Kahurangi National Park along with the famous Heaphy Track. and prams. The blowholes are most spectacular when the sea The close community of around 650 people supports a is rough, but the dramatic views of the rock systems and the Tourism is also recognised as an important industry and is expected growing horticulture, dairy farming and tourism industry. township of Punakaiki are worth a visit even on the calmest of to grow. Areas of particular scenic or natural value are recognised in days. the Buller District Plan, with controls to protect these values while The area is packed with opportunity to experience the wonder still allowing appropriate land use activities to take place. of the environment. Walking, tramping, mountain biking, caving, and fishing are some of the activities that are available OTHER TOWNSHIPS Through the review of the Buller District Plan Council intends to in this region. look at current land zoning in the District and make changes where The townships and associated communities of Karamea, necessary to ensure an adequate supply of appropriately zoned land Hector, Ngakawau, Granity, Birchfield, Waimangaroa, Carters is available. Alongside this, Council wants to ensure that the rules in REEFTON Beach, Charleston, Inangahua Junction, Ikamatua, Springs the District Plan address adverse effects on the environment while Junction and Mawheraiti all have history. Community pride also being enabling, to allow development and land use activities to Reefton is the gateway to both the West Coast and Buller from and a point of significance has kept these townships going. the east coast using the Lewis Pass. Reefton is located an hours take place in Buller. The potential effects of climate change will need drive from Westport and is located at the heart of the Victoria to be considered when looking at zones, to ensure that any future Forest Park. Founded in the 1860’s with the discovery of the adverse effects are minimised.

10 Buller District Council | Draft Long Term Plan 2018-2028 | SETTING THE SCENE | STRATEGIC OVERVIEW

The government have already announced funding for three Key issues and challenges our Council faces are set out in this THE OPERATING ENVIRONMENT projects in the Buller district: including the Old Ghost Road, Plan. These challenges hit harder here in Buller because of our A new government administration came to power in part of Nga Haerenga, the New Zealand Cycle trail, Kawatiri small rating base – most of our district is Crown Conservation November 2017, following the September 2017 General Coastal Trail (feasibility funding, Westport to Charleston); and land. Also closures of the main industries relating to mining Election. It is a New Zealand Labour Party / New Zealand First a feasibility study for a proposed waste to energy plant for and cement manufacture have meant that the Council is on Party coalition government. The New Zealand Labour Party has Westport. a path of transition to new ventures with ways to grow the district, make our towns more liveable, attractive to investors a supply and confidence arrangement with The Green Party of Government climate change initiatives focus on emissions and newcomers. The regions success in growing tourism has Aotearoa New Zealand. reduction and carbon budgets. This means they will encourage put pressure on our infrastructure services and facilities. As an incoming government they have signaled a new renewable energy initiatives (e.g., wind and solar; and electric direction for New Zealand in the November “Speech from cars), and creating carbon sinks. Carbon sinks include planting The new governments key theme to address the challenges the Throne” at the opening of the new parliament. The new trees and encouraging the agriculture sector to change to faced by all local government organisations: more carbon efficient land uses. The government has an government has committed to major investments in housing, “Creating strong, resilient communities through responsive local ambitious plan for 1 billion trees to be planted throughout health, education, policy and infrastructure. It is focused on leadership and participatory democracy sustainable financial New Zealand over the next 10 years. social and environmental responsibility and lifting the standard models, infrastructure, services and regulation.” and quality of living for all New Zealanders. It aims to lift wages Local government has a key role to play in delivering the This theme is resonates with the purpose of the Local and reduce inequality and poverty. Government priorities relating to housing, infrastructure, social Government Act, and to the strategic direction that the Council responsibility, fresh water, resilience, environment, climate has been heading in since the last Long Term Plan was released change and environment. KEY THEMES THAT ARE RELEVANT TO in 2015. The Plans strategy reflects New Zealands change in leadership OUR DISTRICT INCLUDE: and new policy priorities, which already align well with those yy Poverty reduction and increased access to health care and of Council. social housing. yy Building a strong economy, being fiscally responsible and The Brief to the Incoming Minister of Local Government providing certainty. (December 2017, refer www.beehive.govt.nz) has identified a yy Government aspires to become world leaders on number of challenges including: environmental issues and climate change. yy Long term financial sustainability of the local government yy Improving drinking water quality for both rural and urban system and the funding models that apply. areas. yy Households affordability to pay the rates in difficult yy Benefits of economic prosperity will be shared with the economic times. regions. This will include government investment in yy Rising costs to councils to deliver services, which funding infrastructure and broadband. cannot keep pace with. yy A clear focus on sustainable economic development, yy Needing debt as a key funding mechanism to support supporting regional economies, adding value to primary investment in infrastructure. production and increasing exports. yy Ageing infrastructure and community services. yy The establishment of a $1 billion per annum Regional yy Ageing population. Development (Provincial Growth) Fund. yy Providing safe drinking water for all New Zealanders, taking account of the findings of the Havelock North Inquiry. yy Providing infrastructure that is resilient to New Zealand’s high natural hazard environment; and in the longer term to the effects of global climate change.

Buller District Council | Draft Long Term Plan 2018-2028 11 | SETTING THE SCENE | MAJOR ASSUMPTIONS FROM OUR LAST PLAN

In the prior Long Term Plan produced for 2015-2025, Council acknowledged that RESIDENT POPULATION AGEING POPULATION The March 2013 census recorded a total of 10,473 persons as The other main demographic trend forecast for the life of the cyclical declines in primary industries being normally resident in the district. With the loss of jobs plan is that of an ageing population. The proportion of the particularly mining had widespread economic through contraction in the mining sector and the closure of population over 65 years of age is predicted to increase from consequences for the district. It recognised the cement works at Cape Foulwind the District can expect to approximately 18% to 28% of the District’s total population that it needed to position itself to encourage a have had a fall in population levels when the next census is over the next thirty years. This is not only a national trend, more diversified economy to help alleviate the completed. but a global one as well, which will impact on the available For the purposes of this Long Term Plan we have assumed workforce. Therefore for Buller to maintain its population consequences of cycles in primary industry that that the normally resident population as at 1 July 2018 is over time it is important that we are able to retain and attract are still an important part of our district. in the region of 10,000 persons. This is post the Holcim and business and that they in turn can retain and attract staff. Reefton Globe Hill Mine closures and some rationalisation Globally the shifts in demographics are expected to create The 2015-2025 Plan recognised that attracting residents and that has occured in the mining sector. By the end of the 10 competition between both countries and regions for the visitors to our district was an important step towards economic years covered by this plan we expect population levels to be attraction of talent and some outside the box thinking will be diversification. The district has a number of factors that make relatively stable at around 9900 persons which is in line with required. it an attractive place to be, including; affordable housing, a Statistics NZ predictions. wide range of recreation activities and proximity to unique natural assets and environment. That Plan recognised that Buller District Council is part of the West Coast Regional core services and attractive towns were an important step Economic Development Plan 2014-2030 that has a target for to achieving this goal. This continues to be a major focus Buller population of 12,044 by 2030, however this is no longer throughout this Plan. seen as realistic. This plan has been replaced by the Te Tai Pountini – West Coast Regional Economic Development Action plan which was developed during 2016 /17 with the assistance of Central government funding. It outlines the key areas of economic growth activity for the West Coast including Buller.

COMMUNITY OUTCOMES Community Outcomes are the goals that Council wants to achieve for the Community. They reflect what the Community sees as important for its well-being and they help to build up a picture of the collective vision for the District’s future. The outcomes guide decision-making by Council. The Council links its activities and services back to the outcomes. Five community outcomes were developed following community involvement, these outcomes are:

Well-being Sustainable environment A vibrant, resilient, healthy and safe community with access to quality facilities and services The distinctive character of the environment appreciated and retained

Learning Prosperity A district that values and supports learning with accessible relevant education and training A thriving, resilient and innovative economy creating opportunities for growth and opportunities employment

Who we are A happening district with a strong community spirit and distinctive lifestyle For further details of the outcomes, please refer to pages 44-52.

12 Buller District Council | Draft Long Term Plan 2018-2028 WHERE ARE WE AT, WHERE ARE WE HEADING?

Council’s role in all this is as a facilitator. It should provide reliable, affordable services and infrastructure that meet the communities Our District and Communities needs, help develop attractive liveable towns and a district that people will want to visit and reside in. Also, Council’s role as an advocate cannot be understated. Our district requires its share of regional development funding to be successful now and in ‘Fit for Future!’ the future and to help the transformation into modern attractive locations with all the quality services that are now expected in CURRENT ECONOMIC OVERVIEW A WAY FORWARD 21st century communities. Council will also work closely with The current economic situation in the district has improved When Council reviewed this current Long Term Plan and its other West Coast councils, central government and Development since the last Long Term Plan was compiled, which predicted strategy, an evaluation of Buller’s strengths, weaknesses, West Coast to ensure that high speed Broadband access to a contraction in economic activity post closure of Holcim opportunities and threats and a range of factors which could have the internet becomes available across the district along with cement plant in Westport and Globe Hill mine in Reefton, as an effect on the district, was carried out. comprehensive mobile phone connectivity. well as the effects of cyclical activity in primary industries such It’s clear that the Buller has a lot going for it. It also faces a number This means Council needs to continue to invest in key as mining, which is still the largest employer in the district, of challenges. On the plus side it has resilient communities, cheap infrastructure. Over the life of this Plan Council expects to spend and dairy farming. Tourism continues to grow. New Zealand land and housing, abundant natural resources, unique natural $59 million on capital expenditure to maintain the level of service has experienced significant international growth in tourism assets and environment and endless recreational choices. we currently have and to modernise our towns if the district is to since 2013. The government expects this growth will continue be truly competitive as a place to ‘live, work, invest and visit’. with visitor arrivals on target to reach 4.9 million by 2023 It has some challenges, some the Council has in common with the (MBIE/Tourism NZ/Stats NZ forecasts 2017). The improvement rest of the local government sector the Operating Environment); Affordability is one of the biggest challenges that many Councils, in current economic conditions has been underpinned by and some which are unique to our district and region. These are including Buller, faces. In the past three years leading up to this Plan the increase in visitors to the district bought about to some discussed further in Key Issues. Council has demonstrated that it has been prudent in the allocation extent by the closure of State Highway 1 due to the Kaikoura of is expenditure and has come well within its predictions of earthquake in 2016. It is important that we recognise that successful communities need expenditure and the resultant rates increases. It also scores well in a range of interlocking factors that combine to provide a district prudence measures by third party rates watchdog organisations. Moving forward visitor numbers to New Zealand are that is a great place to work and play and is ‘fit for the future.’ These increasing which should mean that the Buller district will get include: a resilient community, services and infrastructure; schools For this Plan to be sustainable it also needs to be affordable both a share of the domestic and international visitor spend even and education providers that strive to provide the best quality in the short and long term and to continue with this philosophy. after reinstatement of SH1. There have also been modest education and consistently aim to turn out high achievers; fit for Looking at this LTP operating expenditure is sufficient to maintain improvements in commodity prices which also have an effect purpose health facilities and services; and resilient diversified the same level of service and is in line with the movement of the on economic activity in the region. economies that avoided the boom and bust cycles of the past. A local government cost index over the life of this Plan as are the vital part of our economic success will require resilient and reliable resultant movement in rates. In addition there has been an increase in residential property infrastructure and transport options (road, sea and air) to and from sales in the district in 2017 (the highest volume since 2012). Council continually looks at ways that it can provide better the region. These vulnerabilities have been highlighted in the 2016 This suggests there may be growing confidence in the district services or provide the same service a different way at a cheaper Kaikoura earthquakes. from an economic perspective. cost to the ratepayer. Shared services (the new buzzword) with A vibrant, diverse and flexible local economy that provides other West Coast Councils are one potential way that costs can be Therefore in summary economic conditions are a lot more sustainable jobs will enable the population to stabilise, and the saved. Council is doing this already with information technology, stable and have a little more upside than was the case when prosperity of the district to improve. That is the option chosen by insurance, finance, civil defence, processing of building consents the last LTP was prepared 3 years ago. Council for this Plan. and planning. There are ways that councils can work with other organisations to set up a tightly focussed Economic Development service that will facilitate the desired economic diversification that Council believes it needs to make our district ‘Fit for the Future’.

Buller District Council Draft Long Term Plan 2018-2028 13 MAORI CONTRIBUTION TO OUR DECISION MAKING

Under Section 81 of the Local Government Act 2002, Council must establish and maintain processes to provide opportunities for Maori to contribute to the decision making processes of the local authority. Council is also required to look at ways to foster the development of Maori capacity to have input into these processes. The Buller District Council recognises and acknowledges that Ngai Tahu is the tangata whenua of Te Tai Poutini. The papatipu runanga for the Buller District is Te Runanga O Ngati Waewae. A relationship has been established with Te Runanga O Ngati Waewae and is continuing to strengthen as time progresses.

14 Buller District Council Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | PROPOSED HOLCIM PROPERTY PORTFOLIO PURCHASE |

KEY ISSUES AFFECTING THE PLAN

INCLUDES:

Proposed Holcim property portfolio purchase...... 16

District Revitalisation...... 20

Our water, we are almost there!...... 24

Our vital links, Karamea Highway...... 26

Climate change, it affects us all ...... 27

The future of our Port, Westport Harbour...... 29

Buller District Council | Draft Long Term Plan 2018-2028 15 | KEY ISSUES AFFECTING THE PLAN | PROPOSED HOLCIM PROPERTY PORTFOLIO PURCHASE | PROPOSED HOLCIM PROPERTY PORTFOLIO

INTRODUCTION THE PROPOSAL Council is negotiating an option to purchase all of Holcim’s assets in the Buller district. Council has an opportunity to purchase the Holcim assets (land, equipment These assets comprise of approximately 500 hectares of land and ancillary buildings at a and buildings) relating to their cement manufacturing plant at Cape purchase price of up to $5.0 million, plus estimated acquisition costs of $260,000. Foulwind (the works) and the rock and limestone quarrying operations at At this stage Council intends on only securing an option to purchase the assets while it Tauranga Bay (the quarry), as well as large land holdings in the area. consults with the community and more fully evaluates the project. The terms include: Holcim is paying for site investigation (investigating and weighing up potential risks This is a big decision and involves the Council spending up to $5.26 million of ratepayer money. and costs). Depending on the results of that, the Council can decide to proceed with The assets were part of an industrial manufacturing site that used and produced hazardous the deal or pull out. substances. Council will review all detailed site investigation reports, investigate risks and liabilities and associated environmental contamination along with the commercial and Holcim is paying to demolish the existing buildings and related facilities at the works community benefits of such a purchase. site relating to the manufacture of cement, that Council doesn’t want. Holcim will be responsible for any liabilities (unexpected costs) that emerge including Council is asking the community to have their say. Council will weigh up the benefits and risks as environmental contamination from known contaminants and potential health effects part of a due diligence process and will decide to proceed with the proposed deal or not based on on land owned by Council for a period of 5-years after the deal is accepted. After that the outcome of this process and consultation with the community. time Holcim would have no further responsibility, and the Council would accept the responsibility for the assets that it continues to hold and any potential impacts from WHY IS THE COUNCIL CONSIDERING THIS? them in perpetuity. This purchase could provide future benefits to the district of Buller by: Holcim will satisfactorily demonstrate the absence of any unacceptable contamination Providing the opportunity for the Council to use the land for a range of different projects such as (and address it where it is identified) before Council would accept the properties. new reserves and cycle ways for the community and visitors to enjoy. The quarry may be a valuable long term source of rock and limestone that the Council could use, for The proposal could generate significant benefits to the district, provided example, for maintaining its roads and building sea walls, flood and coastal protection structures or it was looked into thoroughly. This is why the Council has been working supporting cycle trail construction. The supply of hard rock has become difficult and expensive to hard on looking into the advantages and disadvantages. obtain. The purchase includes the Larsen Street housing block of 10 houses, and large amounts of other land Ultimately it’s you the community that will decide whether the proposal proceeds to the final that Council could use for other community purposes in the future or make available for developers. step or not; after the due diligence phase (i.e. investigating the details and weighing up the risks/benefits). This is why the Council needs to hear your views through the submissions you Other assets have facilities and equipment that would be useful for regional economic development. make on this Long Term Plan and what you have to say at public meetings. Preventing private investors from getting control of the assets, who may not clean up the contamination, or be concerned about the effects on the community. If they walked away the It makes good business sense and is socially responsible to purchase all of the assets that Council may be left to clean up the site using public money. Holcim wish to sell, rather than “cherry picking” the good ones. Efficiency will exist for Holcim dealing with one purchaser only and the whole portfolio should cost less than the sum of its Jobs could be created associated with the new uses of these assets, helping the community to thrive parts. In addition if another party purchased the whole package Council may be unable to get in the future. the assets that it would like. Making some additional revenue for the Council from the sale of some of the land, after paying down borrowings, which could off-set rates or be used for other community projects. By obtaining control of the whole property portfolio, Council expects to on-sell assets not required, and focus on the ones that will have the best outcome for the community. Council has a responsibility to the community which a private developer may not. Put simply there is an opportunity for Council to make a profit on the sale of some of these assets and generate positive community outcomes for our district. On the other hand there also is potential to not make any profit, or worst case scenario, incur significant costs associated with potential environmental clean-up.

16 Buller District Council | Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | PROPOSED HOLCIM PROPERTY PORTFOLIO PURCHASE |

ABOUT POTENTIAL BENEFITS The Council believes this could be a good deal with potential benefits to the community: The Council will be able to on-sell or lease property it doesn’t need, and in a timeframe that will best benefit the community. Council expects to be able to on sell property over a number of years and make a profit on the transaction. Funds generated could be available for community projects or to offset rates through the funds generating term investment income. In addition any remaining land leases and quarry sales would generate income to offset holding costs. The broad retention and divestment proposal is listed in the following table. Holcim Property Portfolio - Proposed Retention and Divestment Summary: Assets to divest upon settlement Assets to hold and divest over a Strategic community sites for Council to retain 3 to 20-year period Housing: Silos at Westport Harbour: Cycleway: yy Larsen Street (10 dwellings). yy Future development potential/on-sell. yy Rural/coastal land along route of proposed Charleston to Westport coastal cycle trail. yy Managers house and land. Farmland: Packing plant along railway line: Quarry: yy Some grazing leases are already in place. yy Future development potential/on-sell. yy Source of rock and limestone; coastal erosion and walking/cycle track surfaces. yy Willing purchasers exist. Cliff top coastal land: Other sites also exist: Land at Tauranga Bay: yy Residential development potential. yy May be on-sold. yy Create a community reserve, or yy Residential/commercial development. Industrial site: Okari Water Supply: yy Ex-cement works. yy Reticulated scheme, potential to link into Carters Beach & Westport supply.

Council has an opportunity to be proactive in respect to future erosion protection and flood mitigation for local communities by securing a cost effective local supply of rock from the quarry. There is potential to produce rock from the Holcim quarry at significantly discounted rates for Council use on public works. Purchase of the Holcim quarry may provide a secure supply of rock for future community needs from a local supply, which should translate to lower cost for projects managed by either Buller District Council or the West Coast Regional Council. Cost synergies may also be achieved for the development of recreational activities as limestone chip creates a good surface for walkways and cycle trails.

Local economic activity can be supported by making suitable land and limestone chip available for the proposed Charleston to Westport Cycle trail. This will add to the recreation activities available to both visitors and residents within the district. The proposed Charleston to Westport Cycle trail would traverse land primarily owned by Council and Holcim. The purchase of the Holcim land would secure access for the cycle trail project.

Community and infrastructure assets can be boosted with the creation of a reserve at Tauranga Bay and the ownership of an additional water supply at Okari. The land is well suited for reserve purposes as it would preserve the undeveloped nature of this area and provide a new community asset. It would also enhance the visitor experience at an already popular DOC destination, the seal colony at Tauranga Bay and the Cape Foulwind walkways.

The Okari supply is a high quality water supply suitable for a reticulated scheme that has the potential to link into the Carters Beach and Westport water supplies to provide a supplementary water source, and improve resilience.

Buller District Council | Draft Long Term Plan 2018-2028 17 | KEY ISSUES AFFECTING THE PLAN | PROPOSED HOLCIM PROPERTY PORTFOLIO PURCHASE |

ABOUT POTENTIAL RISKS The assets include the industrial site that was used in the manufacture of cement for many Based on these investigations, potential contaminants of concern can be broadly years. There will be hazardous materials on this site and Council will need to assess the risks categorised into: carefully before committing to the deal. All plant and buildings associated with the manufacture Waste products associated with cement manufacture such as cement kiln dust and of cement (at the now disused Works) would be demolished by Holcim, as well as a silo at the nodulised stack dust (and their component parts such as heavy metals); wastewater from Westport packing plant. Ancillary storage buildings at the Works would be retained by the the corrosive kiln dust deposits around the site; and site-disposal and burial of general Council for their on-going value. Holcim would manage and pay for the planned demolition. industrial waste.; One of the more significant risks associated with the potential purchase relates to contamination Waste from plant construction; associated with the former cement manufacturing activities at the Works and surrounding Compounds used in the manufacture of cement (e.g. lime, gypsum and other minerals and areas. To protect against this, Council has agreed with Holcim that Holcim will bear the cost additives, and water treatment chemicals); of remediation (cleaning up and minimising the effects) of contamination associated with the manufacture of cement for a period of 5 years, should Council purchase the Holcim assets. Wastes associated with workshop and equipment maintenance (eg, oils, greases, solvents, Experience in New Zealand and overseas has shown that costs to clean up contaminated paints, galvanising wastes, welding, sand blasting); industrial sites can be significant and can be in the order of millions to tens of millions of dollars. Fuels used in the manufacture of cement (eg, fuel oil, waste oil, and coal); This may be well beyond the ability of Buller District Council to afford. There is a risk that Holcim Waste oil (waste oil from throughout NZ was used as one of the cement kiln fuels and could do nothing to clean up the site over the 5 year period and that Council is left carrying this stored in bulk at the Works); cost, therefore Council is driving this process to ensure that the clean-up is satisfactory. Hydrocarbons (petrol, diesel and oil) from storage tanks (above and below ground tanks); A number of environmental investigations have been undertaken over recent years to define Asbestos Containing Material (ACM) used in site buildings and pipelines; and the location, extent and significance of contamination at various Westport Holcim sites. Also Coolant fluids containing PCB’s (polychlorinated biphenyls) associated with the site-based the types of contamination and potential environmental effects associated with cement electrical substation (this is expected to be removed by the lines company). manufacture are well known. At this stage Council has not quantified what the cost of potential clean-up would be. The due diligence process will enable Council to understand the scope of The due diligence process will provide more specific information of what potential contaminants any contamination and if it is not satisfied with the level of risk it can then withdraw from the are present in the land, water, groundwater and in the ecosystem (plants and animals) now. proposed purchase. The Ministry for the Environment provide the standards that should be met to assess, clean up and mitigate the effects of contamination on the environment. They list the types of industrial activities that result in environmental contamination in their HAIL “Hazardous Activities and Industries List”, which gives an idea of what to expect (MFE 2011). Many of these activities are represented at the Holcim sites.

18 Buller District Council | Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | PROPOSED HOLCIM PROPERTY PORTFOLIO PURCHASE |

SUMMARY OF ADVANTAGES AND DISADVANTAGES OF THE PROPOSED PURCHASE Potential advantages of the Holcim purchase Potential disadvantages of the Holcim purchase Assets are purchased that will benefit the community (potential recreation areas and quarry, Additional cost to the ratepayer in higher rates. water supply). Council controls how the assets are dealt with for the benefit of the community. Net debt levels increase. Council may make a profit on the sale of assets not required by the community. The risk and cost to clean up the site from contamination may be very high.

WHAT WILL THIS COST THE RATEPAYER? Buller District Council has carried out financial modelling to assess the affordability and potential At this stage Council intends to finance the purchase using debt. Total cost of the project is effects of the proposed deal on the rest of the Councils finances. From a capital funding and expected to add around $280,000 to the total amount of rates that Council collects (or 1.8%) in debt servicing perspective Council has the capacity to fund the Holcim property acquisition 2019/20 of this plan. This would include mainly interest costs, rates and project management utilising debt funding. Council will briefly exceed its debt affordability benchmark of $20m in costs. The amount reduces over time. There is also an additional cost to the ratepayer year-3 of this plan for one year. Financial modelling has incorporated best, mid and worst case regardless of whether Council purchases Holcim assets or not, as Holcim currently contributes scenarios relating to property sale values and holding periods. The scenario that is incorporated approximately $170,000 in rates. This is the maximum amount that could be picked up by the into this plan is a mid-point scenario. ratepayer. The amount is likely to be considerably less when the future land use of the Holcim site is changed and rates are collected based on this use. Engaging in this project will not delay any planned infrastructure replacement such as finalising all water upgrades. The modelling assumes that there will be no unexpected extra costs that As surplus property is disposed of, the funds from these can be used to pay down debt and any arise from industrial contamination after the 5 year liability period is up for Holcim. After that funds banked could earn interest income to off-set rates. Also Council debt servicing relating to the Council may be liable for any future clean-up costs and environmental effects which have the project and other costs will reduce over time. not been provided for in this plan. The cost of any potential future clean-up is difficult to assess and has not been modelled. The due diligence process will enable Council to gain a greater One of Councils strategic goals is to look for additional income streams that can offset rates. understanding of these potential costs and it can then assess the decision to proceed with the There is a potential that should Council make a profit on the sale of any land surplus to purchase. requirements the funds could generate income if invested with the bank although this may not be significant. Funds could also go toward development of the community assets that are held.

SUMMARY OF THE OPTIONS Option 1: Purchase the Holcim land and assets Option 2: Don’t purchase the Holcim land and assets Council controls what can be done with the asset for the benefit of the community. Key assets Private enterprise may purchase and develop the asset without community interest. There will that can benefit the community can be retained and developed, any surplus assets sold. be no assets acquired which can benefit the community. There will be a total acquisition cost of $5.26m and additional costs to manage the project and No financial cost or impact on rates to the ratepayer and no increase in net debt levels, but debt servicing cost. This increases total rates collected by approximately $280,000 (1.8%) in also no potential profit on subsequent land sales. 2019/20 and is ongoing. This does not include additional rates up to a maximum of $170,000 that must be picked up by the community when the land use is changed (this may be less, based on rates collected on future land use for the site). Council may make a profit when all surplus assets are sold. The liability for clean-up of hazardous material on the site, outside the 5-year warranty period, If another party purchased the assets and could not meet the financial liabilities to clean-up may be borne by Council if required. This could be significant. any hazardous materials Council could be required to remediate.

Buller District Council | Draft Long Term Plan 2018-2028 19 | KEY ISSUES AFFECTING THE PLAN | DISTRICT REVITALISATION | DISTRICT REVITALISATION

To make Buller ‘Fit for Future’ Council has started a wider project to revitalise our district, focusing of the Council buildings including the Clock Tower Council Chambers, Brougham House, Carnegie Library, Sue Thomson on social, economic, cultural and environmental outcomes. This will unfold over the next three Casey Memorial Library, NBS Theatre and the grandstand years and will follow the ‘Fit for Future’ strategy pathways. building at Victoria Square may require further strengthening Resilient: Council buildings will be brought up to building code and be suitable to play a central role during emergencies. and upgrade work to make them safer and more functional, liveable spaces. Growing: A focus on tourism and sustainability will bring visitors and businesses to Buller, in the town and country. Quality Infrastructure: Existing infrastructure will be upgraded and new infrastructure to support a revitalised Buller will be designed to Westport buildings withstand a changing climate in the medium to long term. In relation to building rationalisation Council considered four options during the 2015-2025 Long Term Plan: Liveable: A revitalised Buller with liveable spaces in our community townships and gathering places will help attract businesses and visitors. yy Option 1 was strengthening, modernising, and extending Brougham Affordable: By rationalising Council buildings and facilities and the Council exploring new ways to generate income. Council will have more House to provide a long term solution for Council offices and Council resources to put into the community services. Council will also strive to keep the rates affordable. Meeting Room; yy Option 2 was modernising, and extending the Clocktower to provide a WHERE WE CAME FROM long term solution for Council offices and Council Meeting Room; yy Option 3 was modernising, and extending the Clocktower to provide a Building rationalisation and resilience Council has an obligation both to its staff and to its community long term solution for a Community Cluster Library; and In the 2015-2025 Long Term Plan Council focused on building users to ensure that it is taking reasonable steps to address yy Option 4 was modernising, and extending the Clocktower to provide rationalisation and how we might get better value out of our any buildings that do not meet current earthquake safety a long term solution for a Community Cluster Library, and the Council significant property assets some of which were not utilised standards and an obligation to its ratepayers to ensure that we offices and Council Meeting Room. or under-utilised and/or required significant earthquake get the best value for money out of our assets and that they Council decided that the best approach would be to adopt a staged strengthening and upgrade. are fit for purpose for at least the next 25-years. approach based on Option 2 (above), but only after the Westport Since the Canterbury Earthquakes building codes with water upgrade was completed (2015-2025 LTP). These Council assets included: regard to seismic strengthening have been amended and the Carnegie Library Redbox were commissioned to create a high level design for the Clock Earthquake Prone Building Regulations have come into force. Tower rebuild and their proposal went further than this and created a Sue Thomson Casey Memorial Library These new regulations require that all government buildings, town ‘heart’ concept. In parallel to this a project commenced to look Clocktower Council Chamber and buildings used by the public have to comply with rigorous at how we could better utilise and connect to the waterfront. Neither standards to ensure the safety of the public and people Brougham House of these projects progressed beyond initial concept stage and were working inside these buildings. Council is obliged to comply effectively put on hold awaiting completion of the Westport water Reefton Service Centre with the building safety requirements in the timelines set in repair and upgrade. Reefton Community Centre these regulations. During 2016/17 there was budget set aside to progress both the NBS Theatre Since the last Long Term Plan all of the main Council buildings, Clock Tower rebuild and the waterfont and the two projects were Victoria Square Grandstand except the Carnegie Library have had earthquake assessments. merged into a wider project called ‘Westport Revitalisation’. This The Carnegie Library assessment is currently underway and is was in recognition of the fact that the two precincts were connected The Reefton Community Centre and Cinema received a due soon. A number of buildings had seismic strengthening and should not be looked at in isolation, but together as part of one significant upgrade in 2016/17 with input from the Inangahua work completed to meet the minimum requirements for safety larger urban area, and also in recognition of how hugely important Community Board and local community. and meet the minimum building code required, however the revitalisation of our towns are to the future of our district, both the work has not bought the buildings up to 65% or above economically and socially. of the building code determined as best practice by Council. Apart from the Coaltown and i-Site building in Westport all

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WHERE WE ARE GOING In order to revitalise our district we are starting with Westport as our largest town. Council decided to use a “community placemaking process” to increase community engagement in the project and to allow for prototyping of ideas prior to completing an ‘urban design framework’ for Westport Revitalisation - This project has 4 key focus areas: Westport. After following a Request for Proposal process Council commissioned Creative Communities International (CCI) and Urban Kin (UK) to jointly carry out the work. 1. Looking to the future (ECONOMIC) CCI introduced the concept of a 7 Day Makeover as a community engagement and public space Issues and opportunities prototyping tool. It was hugely successful and showed just how much community spirit there is in Buller and the power of community volunteering. yy Economic revitalisation - making Westport a more appealing place to live. yy Establishing a connection from the Kawatiri-Buller River and the waterfron Through the 7 Day Makeover Process we have learned a lot about what works and what doesn’t. topportunity. The bonus was the creation of an attractive and functional public space which was delivered at low yy Potential museum redevelopment - how to gain the most benefit for the wider cost and is very well utilised by locals and visitors. The other key outcome of this project was the project from this work. development of new town stories for Westport (right), the themes of which have resonance with Buller District as a Whole. These have also helped to shape the Urban Design Framework. See http:// bullerdc.govt.nz/district-council/publications/westport-urban-design-framework for further 2. Belonging and buy in (SOCIAL) information. Issues and opportunities yy Lack of cohesive story to build the community’s future on. THE STORIES THAT ‘EMERGED’ FOR WESTPORT yy Community engagement and buy-in for the process and ongoing work. yy Pride.

3. Vulnerability (ENVIRONMENTAL)

Issues and opportunities yy Climate change and its impact on our community: - Coastal hazards - Flood hazards yy Earthquake prone buildings.

4. Land and assets (COUNCIL) Issues and opportunities yy Building and land rationalisation - being efficient with what we have. yy Asset issues - obsolete structures (wharf), underutilised building, heritage buildings, EQ standards. yy Services - disconnected and dispersed BDC services (eg, library and civil defence). yy Achieve best value for money for ratepayers. yy The development of non-rates income for Council (eg, building leases).

Buller District Council | Draft Long Term Plan 2018-2028 21 | KEY ISSUES AFFECTING THE PLAN | DISTRICT REVITALISATION |

Westport revitalisation BUILDING RATIONALISATION During year-1 of the Long Term Plan, $200,000 has been As in our previous Long Term Plan we still need to look at how we potentially some community/commercial space. budgeted to progress the Westport Revitalisation Plan, including can get the best use and value out of our current building stock. We are not seeking feedback on building options at this stage. options for buildings. We also need to ensure we have buildings that are fit for purpose There is a substantial amount of work to be done on developing and resilient. $408,000 and $416,000 has been budgeted for years 2 and 3 of the potential options, which may involve reutilising an existing the Long Term Plan for non-building and volunteer aspect of These buildings include the Clock Tower Chambers, Brougham building, such as the Redbox proposal, or building something the Westport Revitaliation Plan. House, Carnegie Library, Sue Thomson Memorial Library and the purpose built in another location such as the ‘BACH’ concept. This The capital expenditure for District Revitalisation is to be funded Grandstand Buildings at Victoria Square, currently Emergency substantive piece of work will be carried out in 2018/19 and will by a combination of debt and depreciation reserves. The Operations Centre for Civil Defence ( EOC). All require involve extensive community consultation to ensure we make ratepayer will fund increases in interest and depreciation costs. strengthening or work to make them more safe and functional. the right ‘Fit for Future’ decision for our district. What we are therefore consulting on is whether we should look to rationalize There are other projects in the District which link closely What has become apparent from the Westport Revitalisation our buildings – not what form this should take as this is a with District Revitalisation: project so far is that we may have an opportunity to further conversation for next financial year. There are no budgeted amounts in this Plan for the following rationalise our building stock by combining the council two projects, however Council may consult on the Punakaiki administration civic centre, library and EOC into one facility in There is an allowance of $200,000 for capital expenditure during ‘master plan’ in the future. either the Clock Tower site or a new build elsewhere in the town. 2018/19 to progress the Westport Revitalisation project, including The previous ‘Redbox’ proposal only solved the issue of Brougham investigating the location options for the ‘BACH’ and starting some Biking and hiking trails: House and the Council Chamber. The library upgrade was to be of the non-building non-volunteer aspects. $500,000 has been A key part of our district revitalisation is the emerging a separate project in the future. There is logic in rationalising budgeted for 2019/20 to take the preferred option from concept story around back country biking and hiking. Westport, buildings further by expanding the brief to include space for to ‘build ready’ The capital amounts budgeted for Civic Buildings Reefton, Karamea and in the future Charleston and commercial and/or community activity and create an ongoing are $3m for 2020/21 and $1.5m for 2021/22. These values are Punakaiki, all have the potential to become central income opportunity for council. This concept is one of the four key based on quantity survey data not detailed designs and are merely ‘hubs’ for various biking and hiking offerings that either parts of the Westport Revitalisation project and has been named an allowance at this stage, until key decisions can be made on already exist or are in the pipeline. Council has a key the ‘BACH’ (Buller Area Community Hub). location, scope and design, after which full costings can be done. role in advocacy and facilitation for projects such as the Old Ghost Road, Kawatiri Coastal Trail and the Reefton The Carnegie library was gifted to the community, and therefore Mountain Bike Trails. is not something Council would consider selling. Both this and DISTRICT-WIDE REVITALISATION the Clock Tower Chambers are heritage buildings with significant When applied across the district, not specifically just Westport, Punakaiki ‘master plan’: historical value to our district, however this does not prevent the themes highlighted in the ‘stories’ become: Punakaiki is a key national and regional tourism centre and them from being redeveloped for the purpose of commercial is the Buller District’s major tourism drawcard/attraction. In activity either by Council or by a leasee. This could include things “We offer a world-class back country biking and hiking recent years there has been significant growth in tourists such as retail, hospitality, conferencing and exhibition or gallery experience.” visiting the area, and this has put considerable pressure on space. Adding the Clock Tower building to the museum in order to “We have the wildest backyard in NZ.” existing infrastructure. expand this offering is also a possibility. Brougham House and the “We have a generous and entrepreneurial spirit.” The current development of the new Paparoa Track (Great Sue Thomson Casey Memorial Library, on the other hand, could “We need to built a resilient economy.” Walk) in the Paparoa National Park is expected to add to be become surplus to requirements and sold in order to offset the this pressure in the next few years. The township and new build costs. For the first 4-years of the Long Term Plan $200,000 is surrounds now needs a future focussed plan to set itself up for the long term. The other factor that was not considered in the original proposal budgeted for district-wide projects in order to allow is the impact that climate change is likely to have on Westport and communities in the Buller District to use the 7-Day Makeover/ Council, together with West Coast Regional Council, Grey our district as a whole. These issues need to be understood and Community Placemaking process to take ownership of their District Council, Department of Conservation, NZTA, taken into consideration. public spaces and revitalise our towns in a cost effective MBIE and other central government partners is currently manner. This would be contestable funding with specific developing a community master plan. The previous proposal was to extend the Clock Tower Chambers criteria relating to community placemaking principles and in The initial concept study work is a high level analysis to and accommodate Council administration and the EOC only. alignment with enhancing the new district ‘themes’. One of build a framework for the future growth of the ‘Greater This has been reviewed with options to rationalise other Council the criteria will be ensuring that it is equitable on a per-head of Punakaiki’ area stretching from Lookout Point/Meybille Bay buildings and link to the waterfront now being considered which population basis. to the North, and the Conservation Volunteers facility to also includes the ‘BACH’ which incorporates a library, EOC and the south.

22 Buller District Council | Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | DISTRICT REVITALISATION |

THERE ARE THREE OPTIONS TO CONSIDER Council’s preferred option for District Revitalisation is Option 2 and this has been included in the draft Long Term Plan document.

OPTION 1: Meeting Code of Compliance with existing OPTION 3: Invest in only in a Civic Buildings rationalisation buildings and invest in the ‘Westport/District Revitalisation OPTION 2: Invest in the wider ‘Westport/District project. Project’ Revitalisation Project’, including rationalising Civic Buildings.

Key features: Key features: Key features: yy If Council does not proceed with Options 2 or 3, then Council yy Rationalisation of current buildings into one purpose built yy Rationalisation of current buildings into one purpose built will need to meet the building code regulations and upgrade space, ie, the ‘BACH’ concept combining a administration civic space, ie, the ‘BACH’ concept combining a administration civic the Grandstand and Emergency Operation Centre at Victoria centre, library, emergency management operations centre centre, library, emergency management operations centre Square, the Sue Thomson Casey Memorial Library and and community/commercial space or building at the Clock and community/commercial space or building at the Clock Brougham House administration centre. Tower as per the redbox proposal. Tower as per the redbox proposal. yy Connection to the river. yy Connection to the river. yy Enhanced town centre. yy Enhanced town centre. Costs: yy New and enhanced public spaces. yy New and enhanced public spaces. yy Budget: civic building - $500,000 2019/20, estimated costs Costs: Costs: $3 million in 2020/21 and $1.5 million in 2021/22 ($5 million yy Budget: Additional earthquake strengthening of existing yy Budget: civic building - $500,000 2019/20, estimated costs cost). buildings to meet Council best practice, estimated cost $2.2 $3 million in 2020/21 and $1.5 million in 2021/22 ($5 million yy This is funded by either increasing debt and/or drawing on million in 2020/21. cost). depreciation reserves. The annual additional cost to the yy Budget: Westport revitalisation $200,000 2018/19, $408,000 yy Budget: Westport revitalisation $200,000 2018/19, $408,000 ratepayer when completed in 2022/23 will be approximately in 2019/20 and $416,000 in 2020/21. in 2019/20 and $416,000 in 2020/21. $380,000 (or an increase in total rates of 2.4%). yy Budget: district-wide volunteer projects $200,000 2018/19, yy Budget: district-wide volunteer projects $200,000 2018/19, Advantages: $204,000 2019/20, $208,000 2020/21 and $213,000 2021/22. $204,000 2019/20, $208,000 2020/21 and $213,000 2021/22. yy Surplus buildings can be sold to offset cost of build. yy This is funded by either increasing debt and/or drawing on yy This is funded by either increasing debt and/or drawing depreciation reserves. The annual additional cost to the on depreciation reserves. The annual additional cost to the yy Lower maintenance and operating costs in the future. ratepayer when completed in 2022/23 will be approximately ratepayer when completed in 2022/23 will be approximately yy Ability to increase council’s non rates incomes from $210,000 (or an increase in total rates of 1.3%) $400,000 (or an increase in total rates of 2.5%). commercial leases. yy Buildings would be earthquake compliant and current Advantages: Advantages: buildings would not require additional upgrade. yy Better utilisation of public spaces in Westport. yy Better utilisation of public spaces in Westport. yy All civic functions in close proximity . yy Increased/enhanced ability to host public events.Westport yy Increased/enhanced ability to host public events. yy Buller seen as leading the way in innovative and affordable becomes a more desirable place ‘live, work, invest and visit’. yy Westport becomes a more desirable place ‘live, work, invest building options. yy Better visibility and access to the river. and visit’. yy Enhanced community pride and ownership in public spaces. yy Better visibility and access to the river. Disadvantages: yy Economic development opportunities surrounding new yy Enhanced community pride and ownership in public spaces. yy Misses an opportunity to look at the ‘big picture’ for the town ‘spaces’. yy Better activation of ‘town heart’. yy Does not provide wider social and economic benefits yy Buildings would be earthquake compliant. yy Buildings would be earthquake compliant and current yy Less community engagement in the project. yy Lower cost to implement. buildings would not require additional upgrade. yy Social and cultural benefits. yy Economic development opportunities surrounding new Disadvantages: ‘spaces’. yy Social and cultural benefits. yy Council continues to pay to maintain several not fit for yy More bang for buck in terms of capital spend. purpose buildings. yy Surplus buildings can be sold to offset cost of build. yy Does not give the opportunity to rationalise buildings and yy Lower maintenance and operating costs in the future. reduce operating costs. yy Ability to increase council’s non rates incomes from commercial leases. yy All civic functions in close proximity. yy Buller seen as leading the way in innovative and affordable building options. Disadvantages: yy More expensive than options 1 and 3. yy Will take up to 3 years to complete.

Buller District Council | Draft Long Term Plan 2018-2028 23 | KEY ISSUES AFFECTING THE PLAN | OUR WATER.....WE ARE ALMOST THERE! | OUR WATER, WE ARE ALMOST THERE!

The implications of the Havelock North water supply incident (where more than 5,000 members of the public became ill from drinking contaminated water supplied by their local council) is of significance to Council as these matters are under review by the Government.

HAVELOCK NORTH, WHAT DOES THIS MEAN FOR US? Council is aware of and is closely following the national Council will continue to engage with the Buller communities conversation about public water safety that is occurring on water supply changes and any new requirements. The following the findings of the Government Inquiry into Havelock financial implications of any changes will be addressed at that North. The Inquiry findings have not yet been adopted by time. If required, Council will use Annual Plan processes to government, or translated into changed legislation, regulations introduce and consult on changed water supply requirements. or drinking water quality standards. Council has considered the wide range of possible implications to public water supply service delivery following the Inquiry, RURAL DRINKING WATER UPGRADES including the potential for higher treatment standards, Waimangaroa Inangahua Junction changes to quality standards, and higher costs of service A proposed Waimangaroa drinking water supply upgrade The Inangahua Water Supply has recently been upgraded delivery. did not proceed when serious storm damage to the primary to meet NZ Drinking Water Standards and there is no other The key messaging and specific priority issues currently raw water intake meant that the previously approved scheme significant capital work planned. include: would no longer be viable. Currently Council staff are working with the Waimangaroa Other rural water supplies Bringing all drinking water supplies up to Drinking Water There are no significant capital upgrades planned for the Standards New Zealand ( DWSNZ) compliance. Water Board to establish a possible long term bore solution. The Ministry of Health has been advised of the situation Little Wanganui or Mokihinui drinking water supplies. Residual disinfectant e.g. chlorination for all ground and agreed to put the original application and subsidy on Bringing these up to DWSNZ compliance is an affordability water supplies. hold. An estimate of $474,000 to complete the capital work challenge given the small rate payer base. Council has Appropriate training and credentials for water supply upgrade has been provided for in year one of the Long decided to wait until the new regulatory environment and personnel. Term Plan. However the final costs are not known until the funding frameworks are clarified before budgeting for these There is no doubt that future changes will increase costs of location and design of a new system is known. When the future requirements. No significant capital work is planned drinking water for all registered supplies. What hasn’t been cost of future requirements has been established a revised for the Cape Foulwind non-potable supply as current levels of clarified on a national level is who will pay, and to what extent. Waimangaroa water rate will be required. service are being achieved. In some cases eg, an already compliant system, the cost Council will also progress key responsibilities and authorities impact may be minimal. However, in other cases it could be Ngakawau-Hector under our strategic five-point plan, including water safety substantial. A proposed Ngakawau/Hector drinking water supply plans, catchment risk assessments, resource consents, upgrade did not proceed due to lack of community support easements and land acquisitions as required to ensure future Affordability is the districts biggest challenge, especially for safety and security of all registered water supplies. the small ratepayer-base rural supplies. Whilst the Inquiry has and issues around scheme design and ownership. Council made its recommendations, the Government is yet to adopt will continue to work with the Ngakawau/Hector community Council will need to progress past ‘Gentlemens Agreements’ and into legislation, or address what financial assistance (if any) and to resolve the issues associated with the scheme. For the arrangements to legalise the route of supplies by appropriate under what framework would accompany new compliance purposes of the Long Term Plan it is assumed that there easements. This is essential to safeguard future generations requirements. will be no capital expenditure. However, Council has a supply of water. commitment to continue working with the community to ensure the supply meets legislative requirements.

24 Buller District Council | Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | OUR WATER.....WE ARE ALMOST THERE! |

WESTPORT AND CARTERS BEACH REEFTON PUNAKAIKI Significant work has been undertaken to upgrade the Westport Pipe renewal programs will continue and Council will continue Council has completed medium-term process improvement Water Supply Treatment Plant and ensure the water fully complies to carry out leak detection work as water usage continues to investigations for the Punakaiki Water Treatment Plant, which with NZ Drinking Water Standards. be higher than expected. Some modifications are planned has been plagued by Boil Water Notices (BWN) in recent years. to the Reefton Water Treatment Plant with $60,000 expected A collapse in the Westport water number1 tunnel, which supplies Stage 1 of the process improvements are already underway, to be spent in year one of the Long Term Plan on new UV and raw water to the Westport Water Treatment Plant, is currently with $105,000 committed for priority functional, operational pumping equipment to maintain the supply. under tender negotiations to repair this tunnel and reinstate the and compliance requirements. Work is expected to be gravity fed supply of raw water. A total of $3 million has been completed in 2017/2018. budgeted in 2016/17 and 2017/18 to complete the project. The A further Stage 2 of the medium term improvements requires future of the Westport Water Tunnels and the delivery of raw $175,000 to address treated water storage capacity and water is the biggest challenge facing Westport and Carters Beach perimeter fencing to improve system resilience and security. water supply. This significant infrastructure failure means that the targeted water rate for consumers on this supply must increase to For the longer term Council are leading a masterplan process cover the unexpected cost. for Punakaiki in 2018/19 in conjunction with Department of Conservation, Grey District Council, MBIE, NZTA and West Coast Pipe renewal programs will continue to upgrade levels of service Regional Council. One part of this masterplan is to ensure that by upgrading existing 25mm galvanized steel mains throughout the infrastructure is ‘Fit for Future’. This is a significant project Westport with new 50mm polythene. This will improve pressure and Council has a key role in advocacy and facilitation. and flow to these areas currently serviced by 25mm mains. A fous on appropriate water meters for ‘high use’ consumers throughout District water supplies.

Buller District Council | Draft Long Term Plan 2018-2028 25 | KEY ISSUES AFFECTING THE PLAN | KARAMEA HIGHWAY | OUR VITAL LINKS, KARAMEA HIGHWAY

Council is currently working with New Zealand Transport Authority (NZTA) regarding the future management of the Karamea Special Purpose Road (SPR). Of the 61 km SPR, 49 km from Mokihinui to Karamea (known Previous work has been carried out including stakeholder as the Karamea Bluff), was originally constructed and operated workshops and investment logic analysis. Although useful as State Highway SH67. The remaining 12 km from Karamea to background, this will need to be revisited and re-confirmed. Kohaihai was managed as the Heaphy Track access road. The scope of the business case will incorporate an expanded and more detailed description of the current and forecast use In the early 1990’s, the 49 km Karamea Bluff section was and function of the Karamea Highway including: changed to SPR status, as part of a wider state highway review. Annual average daily traffic and any projected growth SPR’s attract 100% funding from NZTA. Traffic composition e.g. freight, tourism, residents The power to create SPR’s was repealed in 2003 and NZTA are Service requirements currently in the process of phasing them out. All affected road Key asset inventory summary e.g. bridges controlling authorities are now developing transition plans to Risk and resilience assessment facilitate and agree the terms for this process. Regional economic development plans A business case for the SPR is being led by Council in consultation with NZTA to inform the transition plan. This The core challenges with the Karamea SPR are safety, resilience process will consider a wide view of options and investment and high repair and maintenance costs. This goes back to scenarios including but not limited to the following: its original corduroy construction, which included organic Council’s position in the Roading Asset materials e.g. trees, brush being covered over by soil fill. Management Plan (AMP) is that Buller ratepayers The validity of returning the Karamea Bluff section to Decomposition over time causes unstable roadbeds, which State Highway status based on NZTA’s State Highway together with slips and washouts due to the natural terrain, cannot accept the financial risk of maintaining Review 2002 Criteria, specifically routes connecting leads to what has been described as a significant risk. The the SPR as part of the current financial assistance locations of national economic significance such as major following images show locations and an example of previous rate (FAR). agricultural areas (e.g. Karamea dairy farms) and major slips and washouts along the Karamea Bluff. tourist areas (e.g. iconic destinations including Oparara The cost of maintaining the Karamea Highway is approaching Basin and Heaphy Track). $1m per annum. If the ratepayer were to pick up a share of The capital investment required to mitigate what this under the local road FAR, this could be in the excess of is currently a significant risk in terms of resilience, $300,000 per annum. Based on the current level of rates in the affordability and safety for road users. The original district this raises affordability issues for ratepayers. corduroy road construction and poor early build practices, the increase in size and frequency of heavy As a result, and based on the business case findings, Council vehicle use, combined with the natural topography will be seeking a new arrangement with NZTA which avoids and propensity for landslip along the route makes the any additional burden to district ratepayers. current Karamea Bluff section hazardous and expensive Options may include reverting the road back to State Highway to maintain. status, adjustment to the current FAR, or a special agreement considering the unique context and background. Hence, the Asset Management Plan (AMP) have been developed assuming full funding from NZTA will continue in some form after SPR’s are phased out in 2021/22.

26 Buller District Council | Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | CLIMATE CHANGE | CLIMATE CHANGE, IT AFFECTS US ALL!

Everyone has heard a lot about climate change particularly in the last few years. We know it means “Pacific Ring of Fire”, which makes it particularly vulnerable to natural disasters. The Alpine Fault is the major fault running the we will be facing more weather extremes such as droughts, floods and storm surges in the future, length of the South Island. The Southern Alps have been uplifted and more often. along the eastern side of the Alpine Fault. It is considered to be at high risk of producing a major earthquake in the next 50 years. Many scientists are working on climate change – the science “Decisions we make today about infrastructure, Significant earthquakes can also occur on minor fault systems, of behind it, measuring what’s happening to the climate, the which there are many throughout New Zealand. The Canterbury atmosphere and global sea levels. They are investigating what urban development, biodiversity and land and and Christchurch earthquakes are a recent local example. The happened in Earths distant past, through looking at cores deep water management will have implications for Buller region has experienced some of New Zealand’s largest into the polar ice, lake sediments and the seafloor, and by various how our future generations will adapt.” (MFE earthquakes in modern times, Murchison 1929 (M7.8) and other technical means. The Earth has experienced numerous 2017, p6). Inangahua 1968 (M7.1) (refer www.gns.cri.nz). Therefore Council global or major climate change events in the past. The most needs to take earthquake risk into consideration in its planning recent one in recorded history was the named the Little Ice Age They note that over the last century the sea level around New and in its infrastructure strategy.” in from the early 14th century CE (Christian Era) to the late 19th Zealand has risen at an average rate of 1.8mm per year. The century CE, which was a cooling event, coldest from 1600-1800. Intergovernmental Panel on Climate Change (IPCC), of which New The predominant wind direction along the West Coast is That followed a warming event referred to as the Medieval Zealand is a party to, project that global sea level will rise by 0.2 southwest to southeast. Because of the orientation of the Warming (around 900 – 1300 CE). to 0.4m by 2060, and 0.3 to 1.0m by 2100 depending on global Southern Alps air is forced to rise and cool, thus forming rainfall on the west of the Alps, and a rain shadow to the east of the Alps. Many of these climate change events occurred long before greenhouse gas emissions (IPCC 2015). They determine that the mid This is called the ‘Orographic’ effect. That’s why the West Coast has human history. Evidence from those previous events tells us what range of the sea level rise over the next 50 years is 0.3m (30 cm, 11.8 high rainfall, and the East Coast has much lower rainfall. Buller happened to the climate, the sea level and the environment, inches). has high annual rainfall (although less than our neighbours in the and gives us clues to how mankind has adapted to these climate The figures quoted by scientists are average sea levels. Sea levels south). Significant falls occur in the mountains (several metres) changes in the distant past. This will help the scientists and policy vary from place to place, depending on a range of factors such as and headwaters of the key rivers. This makes heavy rainfall and planners who are advising world governments what we may the nature of the local environment, its geology and whether the flooding an enduring risk to the whole Buller district, on people expect to happen with the climate and how we may adapt to land may be sinking or rising because of geological forces. and property; and causes significant damage to infrastructure; climate changes that are happening now and over the next few roading and bridges in particular. hundred years. As noted in the previous section, resilience is the best way we can adapt to and plan for climate change effects on the environment, Scientists believe that global climate change may result in more What’s different about the current global climate change event our homes, towns and infrastructure in the medium to long term. severe weather events and more often in the next 50 – 100 years, that we are beginning to experience now is that scientists believe The Buller is in the same position as the rest of New Zealand in terms as well as higher sea levels so its important to factor this into that human activity is making the climate change faster than the of the potential risks from global climate change, which is why the planning new developments and in developing and implementing natural events that have happened before. This activity includes government is taking the lead on this complex issue, which is so the Infrastructure Strategy. pollution from industries and cars, where large volumes of carbon important for future generations. dioxide and other toxic chemicals have been released into the Coastal erosion is a long-term natural hazard that affects the West atmosphere since the industrial revolution in the late 1800s. Coast of New Zealand in particular due to the prevailing wind conditions. Significant erosion can occur due to storm events, The New Zealand government’s response to global climate Focus on resilience throughout New Zealand. change is coordinated by the Ministry for the Environment (MFE). They recently released an update to provide guidance to local NATURAL HAZARDS Severe storms and resulting flooding is a particular concern for government and to present the latest views on the climate related “New Zealand is a young country and has a dynamic geological the Westport township located on the banks of the Buller River. changes New Zealand can expect (MFE 2017, Adapting to climate environment. Like most of New Zealand, the greatest risks to asset Flooding puts lives at risk as well as causing significant damage to change in New Zealand Interim stocktake report from the Climate integrity and performance are natural hazards. Examples include homes and infrastructure such as stormwater systems and roading. Change Technical Working Group). A relevant overview statement earthquakes, severe storms, flooding, storm surges, erosion, slips “The New Zealand government has been looking at the natural is set out below: and landslides. New Zealand lies at the southwest of the so-called hazards issue for a long time now. With the potential risk of

Buller District Council | Draft Long Term Plan 2018-2028 27 | KEY ISSUES AFFECTING THE PLAN | CLIMATE CHANGE | increased frequency and magnitude of severe storms in the future due to climate change, the government will be taking the lead. CIVIL DEFENCE EMERGENCY WHAT IS COUNCIL DOING ABOUT They have provided some direction to local government on this. MANAGEMENT CLIMATE CHANGE? In the meantime the Buller District Council is working with the Council works closely with the other West Coast Councils and the other West Coast councils and the West Coast Regional Council on West Coast Regional Council, which has overall responsibility for As extremes of weather become more frequent strategies for managing natural hazards, and the issue of longer Civil Defence for the region. The roles and responsibilities for Civil over the next 30-50 years the Council will have term climate change adaption and mitigation.” Defence are administered and supported by the Ministry of Civil to plan to spend more on building resilience Defence Emergency Management (MCDEM), which is part of the of its infrastructure, and also on maintaining FLOOD PROTECTION MEASURES Department of Prime Minister and Cabinet (DPMC). MCDEM can declare a national emergency for significant events, so it can more readiness and building capability of the local Floods are one of the most common natural hazards facing easily call upon the resources of the whole of government. Recent Civil Defence team. New Zealand. The Buller / Kawatiri River is one of the countries examples were the Kaikoura Earthquake and the Canterbury biggest rivers, and has a large mountainous catchment in areas Earthquake. This planning has already started and will be built upon in of high rainfall. Therefore flooding can occur quickly (what subsequent Long Term Plans as the central government hydrologists call “flashy”). Like most river towns built on flood Each Council has its own Civil Defence operation and structure, response to climate change becomes clearer in years to come. plains flood events can have widespread impacts; on peoples which is staffed by a dedicated group of highly skilled volunteers, safety, their property and houses and on infrastructure. many of whom work for the Council in their day-to-day jobs. Our coastal communities are at risk. The communities of Civil Defence works very closely with a number of other agencies Hector and Granity on the seaward side of the State Highway Flood protection is the overall responsibility of the West and non-governmental organisations such as the emergency are the most critical and at risk, as is the community at Coast Regional Council. However the Buller District Council services (Fire and Emergency NZ, New Zealand Police, St Johns Punakaiki. Options are being explored with the regional works closely with them. This is because infrastructure issues Ambulance, District Health Boards), Salvation Army, Red Cross council and the property owners. The community of Westport relating to stormwater management in and around the town of and iwi. The Council is also a lifeline utility organisation providing may require greater flood protection. Council is advocating Westport cannot be considered in isolation. essential infrastructure services to the community, such as: with the regional council on a suitable option to protect the The West Coast Regional Council is currently on six options drinking water, wastewater treatment and stormwater and township. for Westport Flood Protection, ranging from “Do Nothing” to transport. Other lifeline utilities include the electricity network Identification of Council assets and infrastructure that could a $13 million stopbank and river cut - http://www.wcrc.govt. provider Buller Electricity, and the communications providers be impacted by climate change is important. This includes nz/our-council/asset-management-plans/Pages/Westport- such as Spark and Chorus. roads and transport infrastructure, 3 waters infrastructure and TheOptions.aspx. The civil defence response is managed using the Coordinated Council buildings. Key assets identified and assessed to date Once the preferred option is settled upon additional Incident Management System (CIMS), which is used universally by include: stormwater protection work may be required, for example all of the agencies and people involved. MCDEM coordinate the Westport Airport – seawall extensions are planned pumping of stormwater over the stopbank similar to what has CIMS training and capability building throughout New Zealand. in this LTP to address the threat (total cost $390,000 in been implemented in other river port towns. Flood protection Resilience is one of the New Zealand government’s highest 2018/19, note Councils share of the cost is $180,000 with works may also have implications for the management of the priorities, and also one of ours here in Buller. The Council decide the balance being funded by the Ministry of Transport). Port of Westport and its associated infrastructure and assets. whether to declare an emergency either prior to a major event, XXCarters Beach Domain Hall – a bund has been Further discussion is set out in the Infrastructure Strategy such as a predicted major storm, or as an event unfolds, and section. constructed to help protect the building. it becomes clear that the event is overwhelming the business XXKaramea Highway - a section of the Karamea Highway as usual capability of the Council and additional resources are near Granite Creek Bridge – to be monitored. required to manage the emergency. XXPunakaiki - Dickinsons Parade has been closed to Recent activations have highlighted the importance of address the threat. maintaining resilience, declaring early and also the value of our Civil Defence volunteers. The Council also has a role in disaster recovery, and using the framework in the CDEM Act 2002 the We are interested in your feedback on our resilience Council coordinate and resource the recovery and clean-up arrangements. How do you think we did in the recent operations. Tangible signs of the Councils role in recovery was significant storm events; what can we do better; and do you providing for free green waste disposal at the districts transfer think we are focusing enough on this important area? station, and the disposal of all waste from red stickered homes.

28 Buller District Council | Draft Long Term Plan 2018-2028 | KEY ISSUES AFFECTING THE PLAN | THE PORT OF WESTPORT | THE FUTURE OF OUR PORT, WESTPORT HARBOUR

Council resolved to instruct the directors of its wholly owned subsidiary Buller Holdings Limited to wind up Westport Harbour Limited (WHL) and to sell the Kawatiri dredge in late 2017. The Port previously had Holcim NZ as its sole major user but We have assumed for the purpose of this LTP that the port when cement manufacturing ceased at Cape Foulwind in 2016 will continue as a commercial fishing port, but no longer be the Buller river bar was no longer required to be dredged for involved in large scale domestic or international shipping. outgoing cement carriers. There is potential for the port to be used for receiving waste from the north island as part of Waste To Energy project should Other out-port dredging opportunities were limited therefore this go ahead, but the likelihood of this is 2-3 years away. It is the directors of Westport Harbour Limited sought the prudent likely that if this occurred and dredging was required then this option which was to cease any dredging activity and wind up cost may be built into the total project cost of the initiative on the company as it was losing money. a user pays basis. Westport ratepayers could not afford to continue the cost The port is a good candidate for shared services and currently of dredging the bar when there were no major commercial a regional harbourmaster is being explored, with the Grey users of the port except the commercial fishing fleet. Water District Council. and Hydrological Reports provided to Council indicate that dredging does not aid flood protection for Westport. In this LTP there are costs assumed for running a port at this level. For year one of this Long Term Plan the cost to the Council is currently in the process of selling the Kawatiri ratepayer is estimated at $230,000 for 2018/19 and is ongoing dredge as it is no longer required. Should this process take throughout the Plan. longer than required there may be opportunities to lease the vessel out to a third party. There has been no provision in this Plan made for future maintenance of the wharves as this is unknown at this stage. In March 2018 Buller District Council bought the land assets However this will be included in future Annual Plan documents relating to the port for $1.3m back off WHL to ensure the assets when an asset management plan has been updated based on were kept under direct control for future generations of Buller the port use in the future. and to allow Councils wholly owned subsidiary Buller Holdings Ltd to focus on its remaining core businesses.

Buller District Council | Draft Long Term Plan 2018-2028 29 | FINANCIAL OVERVIEW AND STRATEGY |

FINANCIAL OVERVIEW AND STRATEGY

INCLUDES:

Financial Snapshot...... 31

Financial Strategy...... 34

30 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY | FINANCIAL SNAPSHOT

FINANCIAL REPORT CARD FOR THE LONG TERM PLAN Council has managed to keep total rates increases low over the last 3 years since the 2015-2025 Long Term Plan. There are a number of factors which are driving rates moving forward. Transfer of the Westport harbour to Council has added around $230,000 to rates proposed in 2018/2019. In addition there are increases planned in the renewal programme for Westport water and Westport sewerage which increases targeted rates for these schemes. Collectively this increases total rates by over 3% for 2018/2019. In 2019/20 the financial effect of the proposed Holcim purchase impacts on debt servicing cost and ultimately on rates. When these one off factors are considered Council has controlled its expenditure on its ‘business as usual’ costs well. Overall the total increases in rates, after taking into account inflation, is close to the total movement in the Local Government cost index (a Council benchmark) over the Plan which is a satisfactory result. Council exceeds its debt affordability and rates affordability increase benchmarks in this plan. Council believes that this is appropriate given the benefits of the investment in the future that is proposed over the next 10-years of this plan. Council runs accounting deficits over the life of this LTP. This is mainly because it is not fully funding the depreciation expense for all activities where we have assumed assets will not be replaced or will be funded from external sources. In addition Council is funding renewals for roading rather than depreciation. The effect of this is significant. The difference between funded renewals and depreciation in the Roading activity is $1.4m in 2018/19 increasing with inflation projections to $1.5m in 2028/2029. When this is taken into account Councils has sufficient cash income to cover cash expenses over the life of this LTP. For this Plan Council has set its revenue to cover all the actual money needed to be spent to provide the levels of service as detailed throughout the plan.

Operating Revenue and Expenditure

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0 16/17 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 Actuals AP -5,000,000 * Note: Excludes the one off disposal of Karamea Revenue Expenditure Surplus/Deficit Highway to NZTA (2021/22: $21.5m loss). *

Buller District Council | Draft Long Term Plan 2018-2028 31 | FINANCIAL OVERVIEW AND STRATEGY |

INFLATION - AN IMPORTANT INPUT TO THE PLAN There is an important point to take into account when considering the financial elements of the Another important aspect of inflation is that there are many different measures of inflation 2018-2028 Buller District Long Term Plan. All Councils are required to include the forecast cost of depending on the sector involved. Most commonly referred to and understood is the Consumer inflation in their Long Term Plans. This is not discretionary and it can be very confusing. Price Index (CPI). This largely relates to domestic costs. Inflation included in this Plan is not the same as CPI inflation. It does include similar items but the Council’s inflation forecasts are Inflation (being the rise in the general level of prices of goods and services over time) must be required to include additional inputs specific to inputs Councils use. The basket of inputs used specified by cost type for each year of this Plan. For detail on the inflation rates and cost types by Local Government in New Zealand is referred to as the Local Government Cost Index (LGCI). used in this plan please refer to the table on page 143. The LGCI is traditionally higher than the CPI due to the higher weighting of oil-based products Buller, like most other Councils in New Zealand, uses inflation forecasts provided specifically used in roading. for the long term planning process by Business and Economic Research Limited (BERL), which Buller District Council focuses on affordability of rates for its communities. Over the life of the is an independent economic research company. BERL is commissioned on behalf of Local plan Council has attempted to keep operating expenses, to provide the level of service that Government in New Zealand to provide sector specific inflation parameters. the community requires, to a prudent level. Inflation increases the cost of the goods over time. The inflation figures provided by BERL would cumulatively amount to an increase in costs of Council has tried to keep rates increases close to the level of inflation that is predicted for the around 28% over the life of this Plan if the costs of services remained the same as they do in type of goods and services that it needs. This is one of the key measures of Councils performance the current financial year. Put another way, ignoring the potential for efficiencies, costs are relating to rates increases in this plan. predicted to increase by this margin in the planning period without adding any new functions, building any new assets or increasing the current levels of service.

OVERALL CAPITAL EXPENDITURE The replacement costs of assets signalled through the asset management plans aggregate to a total capital works programme of $59m over the 10 years. Capital expenditure totalling $20m (34%) is targeted at improving levels of services and $39m (66%) is used to fund asset replacements. Capital Expenditure: 2018 to 2028

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028

Levels of Service Assets Replacements

32 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY |

Significant Capital Expenditure across the 10 years of the plan(a full capital expenditure schedule can be found on page 123) Details Total Cost Water Westport - $4.7m Mains upgrades over the 10 years of the plan. Reefton - $1.1m Waimangaroa Drinking Water Standards Upgrade deferred to 2018/2019. Expected subsidy $ 0.4m. $0.5m Roading Local Road renewals for the 10 years of the plan . $12.3m Karamea Highway for the first 3 years of the plan. $1.1m Rough River Bridge contribution to Grey District Council 2019/20 (BDC contribution to capital costs) $1.1m Footpaths Footpath renewals over the 10 years of the plan $2.2m Sewerage Westport - $7.8m Sewerage asset replacements and upgrades for the 10 years of the plan. Reefton - $2.0m Little Wanganui - $0.2m Stormwater Stormwater asset replacements and upgrades for the 10 years of the plan. $2.4m Property Holcim sites purchase 2018/19. $5.3m District wide volunteer based urban makeovers over the 10 years of the plan. $1.2m Westport Revitalisation: 2018/2019 $200,000, 2019/2020 $408,000, 2020/2021 $416,500. $1.0m Westport Civic Building: 2019/2020 $500,000, 2020/2021 $3,000,000, 2021/2022 $1,500,000. $5.0m Airport Rock Wall extension 2018/2019. $0.4m Runway re-surfacing 2018/2019. $0.2m Runway replacement 2027/2028. $0.6m Support Services Core enterprise software system replacement 2021/2022. $0.8m

Buller District Council | Draft Long Term Plan 2018-2028 33 | FINANCIAL OVERVIEW AND STRATEGY | FINANCIAL STRATEGY

THE FINANCIAL STRATEGY CAN BE SUMMARISED AS FOLLOWS: 1. Expenditure to be adequate to maintain existing services and to maintain the quality and avoid deterioration of assets and capacity. Additional expenditure will be considered if it improves resilience and reliability of Councils services delivery and meets the current and future needs of the community. This includes providing financial support to community led development opportunities that meet Councils overall strategy. 2. Manage debt and finance costs in a financially prudent manner. Council have set a net debt ceiling benchmark at $20 million. 3. Allowing for Rates increases for improvements in service delivery, core infrastructure and initiatives that may attract new economic activity in the district. Rates affordability is a strong consideration for our communities. Council has set a benchmark to keep rates increases within the long range Local Government Cost index which is 2.4% per annum. 4. Minimise Council reliance on rates income by considering external investment opportunities and external funding options. Borrowing to facilitate these initiatives will be considered if this is consistent with Councils overall strategy.

GROWTH IN RATEABLE PROPERTY NUMBERS MAJOR FACTORS AFFECTING THE BULLER DISTRICT AND Years Properties THE FINANCIAL STRATEGY 2018/2019 7,460 yy The district is susceptible to cyclical fluctuations in primary industry, including mining and dairy farming. 2019/2020 7,470 yy Rates affordability is important given the district has an aging population. Council has a high 2020/2021 7,480 reliance on rates income and should explore external income opportunities to offset this. 2021/2022 7,490 yy Council advocacy for regional development is important. This includes high speed broadband and extended mobile coverage. Modern services offer potential for economic development 2022/2023 7,500 opportunities. 2023/2024 7,510 yy The closure of some industries such as cement manufacturing near Westport, a gold mining The growth rate in rateable properties is mainly due operation in Reefton and the rationalisation of a number of coal mines has resulted in a 2024/2025 7,520 to subdivisions of land. Council has taken into account short term decline in the district population. Population is expected to remain stable in the 2025/2026 7,530 the effect of land and coastal erosion on the number of medium term. rateable properties. 2026/2027 7,540 yy Domestic and international tourism remains the most likely industry to achieve growth. The district abounds in natural attractions, historical features, ecological wonders and walking, 2027/2028 7,550 climbing and mountain biking opportunities. yy Council is focused on tight cost control and will work with other West Coast Councils wherever it can to bring about service enhancement or savings through shared services. yy Council will continue to invest in core infrastructure for our communities. Infrastructure capital projects and upgrades provide the major proportion of capital expenditure proposed over this plan. This includes completing water projects to provide clean safe drinking water and the impact of any government legislation regarding water supplies. Councils infrastructure strategy has been developed in conjunction with the key aspects of this financial strategy.

34 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY |

FINANCIAL OVERVIEW We have to do more than just limit spending. Council also needs to look for opportunities to increase its income. Along the way we still need to make sure that our infrastructure assets are meeting community needs and that they also meet the various legal requirements they operate under. This is always a balancing act. On one hand we need to make sure our assets, such as pipes, roads, and treatment plants, meet environmental and health standards (such as the water quality standards). On the other hand, asset renewals and replacements are expensive and we need to make sure that any increases in Council’s income (which primarily comes from rates and fees and charges) are affordable for our Community, all the while meeting our overall goal of ‘a balanced budget’ as stipulated in the Local Government Act.

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Operating Revenue 23,469 24,716 24,972 25,355 25,035 25,316 25,519 25,725 26,430 26,862 27,370 Operating Expenditure 23,084 24,921 26,674 25,893 47,148 26,172 26,573 26,820 27,482 28,029 28,558 Surplus/(Deficit) 385 (205) (1,702) (538) *(22,113) (856) (1,054) (1,095) (1,052) (1,168) (1,188) * Note: Includes the one-off disposal of Karamea Highway to NZTA ($21.5m loss). Council has accounting operating deficits over the life of the plan. This is primarily because Council funds renewals rather than depreciation for one of its biggest capital spends which is on roading. NZTA in its latest audit of our roading network has determined that the network as a whole is in very good condition. The roading programme is set with NZTA based on this premise and not on the level of depreciation for network which is higher. Hence there will always be an accounting deficit when taking this into account. In addition there are capital subsidies for sponsorship that cease from 2019/20 which add to the deficit. On a cash basis Council is operating prudently and income is at a sufficient level to cover its expenses. Council will continue to monitor long term sustainability to ensure that adequate resources are available to maintain the current level of service for the roading network.

STATEMENT CONCERNING BALANCING THE BUDGET SPENDING ON ASSETS Council’s budget over the life of this Plan does not balance (a balanced budget is considered one It is important that asset condition is maintained to avoid a reduction in service delivery to our where each year’s projected operating revenues are set at a level sufficient to meet that year’s communities and also to avoid deterioration of these assets. Maintaining service levels and project operating expenses). Council is not fully funding the depreciation expense for all activities avoiding deterioration of assets is important because our communities expect a certain level where we have assumed assets will not be replaced or will be funded from external sources. In of service and there is a cost in the long run of deferring maintenance and replacement of addition as highlighted earlier Council is funding renewals for roading rather than depreciation. assets. The risk is that if we do not spend this money now then it is likely that we would end up The effect of this is significant. The difference between funded renewals and depreciation in spending more later on and we also run the risk of infrastructure failing. roading is $1.4m in 2018/19 increasing with inflation projections to $1.5m in 2028/29. When this is There is a key link between our Infrastructure Strategy (on page 153) and this Financial Strategy. taken into account Council would run a balanced budget for the majority of the years in the LTP. Affordability, adequate service levels and maintaining the quality of our assets are all important. For this Plan Council has set its revenue to cover all the actual money needed to be spent to Some of our assets are getting old, and need to have repairs or replacements in the near future. provide the levels of service as detailed throughout the plan. This includes the replacement and Some are new or in good condition and require less to be spent on them. The spending on renewal of assets where required. assets is considered necessary to maintain our current levels of service. But there is a cost in doing this. Therefore this is a delicate balancing act to ensure that we get the formula right and CAPITAL EXPENDITURE don’t expose our communities to undue risk or cost! When considering its capital works schedule Council took into account the current economic climate and the debt levels forecast over the next 10 years. Council decided it was prudent to give priority to critical projects affecting drinking water in the last LTP this philosophy has continued into the current LTP. Other projects such as the rationalisation and of Council property and revitalisation of town and community hubs have been deferred until the drinking water projects are complete.

Buller District Council | Draft Long Term Plan 2018-2028 35 | FINANCIAL OVERVIEW AND STRATEGY |

COUNCIL’S DEBT FORECASTED TOTAL RATE INCREASES ACROSS THE 10- It is crucial that debt levels are within affordable and sustainable levels. Council set its net YEAR PLAN debt cap at $20m within the 10 Year Plan. We only borrow to invest in long term assets or opportunities that can increase income for Council. Council does not borrow for operating Total rates expected to be collected by Council increases from $14.3m to $17.2m over the life purposes. of this Long Term Plan. This is mainly due to inflationary increases that are accounted for in this plan as well as the effect of major projects proposed such as the Holcim purchase and the Page 33 explains what we plan to spend on community assets for the next 10 years. We will also District revitalisation. The sum of the proposed rates increases over the Plan is slightly less than outline what impact this would have on our debt levels and overall income requirements from the sum of the long run Local Government cost index that Council uses as its rates inflationary rates, user fees and charges, and other sources of income. benchmark. Council has produced a plan which demonstrates sustainable external debt levels. Net debt The years where rates are expected to be higher than the long run Local Government cost index (being gross external debt less term deposit investments) is anticipated to be at $18.2m in are 2018/19, 2019/20, 2021/22 and 2025/26. 2018/19 and is projected to be at $12.2m in 2027/28. In 2020/21 Council is expected to exceed its net debt benchmark of $20m for that year, this is because of the proposed Holcim purchase. The increase in 2018/19 is higher mainly due to costs associated with taking over the Westport The net debt is predicted to fall after this year. Council at the same time is committed to a port and increases in the renewal programmes for Westport water and wastewater and the loan significant capital expenditure program totalling $59m over this plan. This is to be funded from a associated with the Westport water tunnel project. mix of depreciation reserves, external and internal borrowings. The increase in 2019/20 is mainly related to the Holcim project. The increase in 2021/22 is due to the increased spend on the District revitalisation project and the increased ratepayers share of Debt, Investment, Net Debt: 2018/2019 to 2027/2028 roading costs. 45,000,000 In 2025/26 increases in roading expenditure is the main driver of the rate increase. 40,000,000 Total rates: 2018 to 2028 35,000,000 20,000,000 30,000,000 18,000,000 25,000,000 16,000,000

20,000,000 14,000,000

15,000,000 12,000,000

10,000,000 10,000,000 8,000,000 5,000,000 6,000,000

0 4,000,000 16/17 Actuals 2017/2018 AP 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028

Finance Costs Borrowings Term Investments Net Debt 2,000,000

0 Gross debt is predicted to increase over the 10 years of the plan from $34.3m in 2018/19 to 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 AP $36m. Term investments are expected to grow from $16m to $23.8m at end of plan. Net debt which is a key measure for Council is expected to reduce to $12.2m at the end of the 10 years of General Rates Targeted Rates the Plan.

36 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY |

FORECASTED TOTAL RATE INCREASES ACROSS THE 10- THESE INCREASES ARE AS A RESULT OF: WHAT IS A REASONABLE RATES LEVEL? YEAR PLAN Price increases – the price adjustors used for Local Government are higher than predicted In setting rates at the appropriate level, Council must balance what is affordable for both the inflation and this means that it will cost more to provide services. Council and the community. This is a balancing act which needs to take into account the services Total rates expected to be collected by Council increases from $14.3m to $17.2m over the life that Council delivers and whether the current or future ratepayers should pay for them. This is Service level changes - water is the major activity where Council will be increasing their level of of this Long Term Plan. This is mainly due to inflationary increases that are accounted for in sometimes referred to as intergenerational equity. This is important for the Council given that service by improving the quality of the water through capital upgrades to enable current water this plan as well as the effect of major projects proposed such as the Holcim purchase and the many of its assets have long service lives and the benefits that these assets provide are over a supplies to meet the latest Drinking Water Standards. District revitalisation. The sum of the proposed rates increases over the Plan is slightly less than long period of time. The main tool is the use of debt and then rating ratepayers to service that the sum of the long run Local Government cost index that Council uses as its rates inflationary Depreciation and Interest payments – the increased capital expenditure programme means debt. benchmark. corresponding increases in costs in these areas, depreciation is also affected by inflation. In assessing the right funding level Council has to consider the following: The years where rates are expected to be higher than the long run Local Government cost index are 2018/19, 2019/20, 2021/22 and 2025/26. yy Have we set revenues at a level to cover all of our expenses? yy Have we set revenue at a level so that we can afford an ongoing asset renewal and The increase in 2018/19 is higher mainly due to costs associated with taking over the Westport replacement programme? port and increases in the renewal programmes for Westport water and wastewater and the loan yy Is the number of projects and the total cost of the asset development programme affordable? associated with the Westport water tunnel project. yy Have we considered the needs of current and future ratepayers? The increase in 2019/20 is mainly related to the Holcim project. The increase in 2021/22 is due to the increased spend on the District revitalisation project and the increased ratepayers share of roading costs. Forecasted total rate increases across the 10-year plan In 2025/26 increases in roading expenditure is the main driver of the rate increase. 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 Total rates: 2018 to 2028 General Rates 8,466,370 8,906,718 8,902,026 9,326,897 9,486,788 9,460,855 9,392,663 9,789,177 9,873,298 9,956,126

20,000,000 Targeted Rates 5,865,764 6,032,172 6,252,540 6,464,811 6,629,085 6,746,482 6,849,860 6,943,850 7,040,789 7,207,150 18,000,000 Total Rates 14,332,134 14,938,890 15,154,566 15,791,707 16,115,873 16,207,337 16,242,523 16,733,027 16,914,087 17,163,277 16,000,000 Increase % 3.6% 4.2% 1.4% 4.2% 2.1% 0.6% 0.2% 3.0% 1.1% 1.5% 14,000,000

12,000,000

10,000,000

8,000,000 6,000,000 WHAT ARE THE QUANTIFIED LIMITS ON RATES AND RATE LIMITS ON RATES COLLECTED 4,000,000 INCREASES? While the Council will continue its approach of allocating rates as a funding proportion based 2,000,000 on who causes and benefits from its activities, it plans to limit the rates collected each year to a Council will endeavour to keep the income required from rates steady as well as creating 0 maximum of 65% of total Council revenue. We believe this would represent an equitable and 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 predictability in the level of rates required. This will include taking a multi-pronged approach prudent upper limit. AP of managing the cost to the ratepayer (through efficiency gains and/or service reductions), General Rates Targeted Rates increasing other revenue sources (to reduce dependency on rates revenue) and/or disposing of surplus assets. The Council is required by legislation to include a statement on quantified limits on rates. Currently Council draws about 55% of its income from Rates because it has limited alternative revenue streams. It does not have significant financial investment funds or investments in corporate enterprises that can generate large income streams. Consequently Council has taken a fairly low risk approach to borrowing.

Buller District Council | Draft Long Term Plan 2018-2028 37 | FINANCIAL OVERVIEW AND STRATEGY |

Council's Revenue and Financing Policy sets out the sources of funding to be used, and how they will be applied to each activity - with a view to achieving this objective: 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 General Rates 8,313,828 8,466,370 8,906,718 8,902,026 9,326,897 9,486,788 9,460,855 9,392,663 9,789,177 9,873,298 9,956,126 Targeted Rates 5,517,159 5,865,764 6,032,172 6,252,540 6,464,811 6,629,085 6,746,482 6,849,860 6,943,850 7,040,789 7,207,150 Total Rates 13,830,987 14,332,134 14,938,890 15,154,566 15,791,707 16,115,873 16,207,337 16,242,523 16,733,027 16,914,087 17,163,277 Total Revenue 23,468,639 24,715,825 24,971,686 25,355,408 25,035,116 25,315,755 25,519,077 25,724,887 26,429,963 26,861,847 27,369,946 Rates as % of Total Revenue 58.9% 58.0% 59.8% 59.8% 63.1% 63.6% 63.5% 63.1% 63.3% 63.0% 62.7% (*) Rates exclude water meter rate

Council funds, or in other words rates for depreciation for all activities except roading and LIMITS ON RATE INCREASES stormwater, and uses depreciation reserves to fund asset renewals and to replace assets as they While the Council will continue to consider affordability issues when setting rate levels each year, wear out. Council is required by legislation to include a statement on quantified limits on rates increases. Limiting the increase to the Rates forecasted in the Long Term Plan reflects the realities of higher There are exceptions where depreciation is not funded and these are where Council has received local government costs, ie, the cost of doing Council business. It also recognises that from financial assistance in the past and expects finance assistance to be available in the future to time to time Council will need to increase the level of service that it is providing to meet, for fund asset replacements (eg, pensioner housing upgrades, rural fire vehicles). example, community needs and new resource consent requirements. Individual properties may This method provides for intergenerational equity and means that those people that receive the experience smaller or larger increases depending on movements in property values, the services benefit of the asset generally pay for their share of the asset. that they receive and their location. Council would like to set the quantified limits on rates at the 20 year average of the Local Government Cost Index (between 2007 and 2028), which is 2.4%. Council has agreed to fund capital expenditure for Buller Recreation Ltd (Pulse Energy This index is based on the current range of services provided under a local government context. Recreation Centre) over the term of the Plan, in exchange for shares in Buller Holdings Ltd. CAPITAL EXPENDITURE AND DEPRECIATION FUNDING When the recreation centre was constructed and transferred into a Council controlled The Council currently has infrastructural assets worth close to $438m and during the next organisation it was agreed by Council that depreciation would not be funded for this asset but 10 years Council is planning to undertake additional capital works of close to $59m. Asset instead and capital replacements that were required would be funded by debt at the ratepayer development expenditure is for purchasing, building, replacing or developing Buller District level in exchange for additional shares in the holding company. In this Long Term Plan this assets (eg, roads, water supplies, properties etc). For each asset category asset management means that there will be an increase in debt and investment in the holding company in Councils plans are in place which are the key planning tool for the maintenance, future renewal and balance sheet and there are also associated debt servicing costs that are passed onto the additional assets required to meet the demand and levels of service in the district. These are ratepayer subsequent to this transaction. Major capital funding requirements for the recreation prepared on the basis of a 30 year outlook which is required by legislation but is also prudent centre and the years that they are proposed are shown below. asset management practice to take a long term view of asset renewals particularly in a local government. These asset management plans also inform how the planned expenditure will be Breakdown of major Council funding for Buller Recreation’s capital expenditure over the paid for. term of this plan: 2024/2025 $1.0m - Administration area fit out and electrical fit-out. Aquatic Centre fit out and ‘Renewals’ are the replacement programme for the existing assets. ‘Level of service pool surround resurface. improvements’ relate to where Council believes the current assets do not provide an adequate level of service. Renewals of assets are generally funded from depreciation as over the Long Term 2025/2026 $1.6m - Hockey turf and Aquatic centre fit out and plumbing replacements. Plan the level of renewals should be in line with depreciation. Improvements in Level of Service Administration area mechanical replacements. are generally funded from external borrowings, capital subsidy or from capital contributions. 2027/2028 $0.9m - Fit-out and plumbing for the Aquatic centre Council’s policy is to mainly fund increases in service levels through borrowings, normally over 20 years, but shorter or longer terms may be used for some assets depending on how long they are expected to last before being replaced.

38 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY |

DEBT AND INTEREST BORROWINGS TABLE Under section 100 of the Local Government Act 2002, Council considered its financial management responsibilities, where it must manage its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current Impact of additional borrowing on rates: and future interests of the community. The Council has also considered whether it is sustainable “Greater use of borrowing for long-life assets can enable rates to be held at a lower level over a to undertake the level of capital works planned in the 10 Year Plan together with the increased considerable period of time, even allowing for interest costs. There is some aversion amongst debt servicing costs associated with the higher debt level. If the Council has too much debt ratepayers to the taking on of debt, which is seen by some as financially unsound. Reflecting then future ratepayers will subsidise current ratepayers. Conversely, too little and the reverse this, some Council’s perceive being debt-free as a virtue. This ignores the benefits of being able to situation applies. The Council has considered the timing of this programme and the associated undertake expenditures earlier than would otherwise be the case. It also ignores the interest cost that borrowings required to ensure that this best meets the needs of current and future generations. ratepayers bear by paying the rates earlier to fund the capital expenditures than would otherwise In doing so the Council noted the following information from the Local Government Rating have been the case.” Inquiry 2007 (Shand Report): Overview of debt, investments and net debt over the 10-year plan 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 Borrowings 34,314 35,762 36,595 38,606 38,222 35,820 36,343 37,417 35,693 36,047 Term Investments 16,064 17,064 16,064 19,564 20,564 20,064 21,064 23,064 22,804 23,804 Net Debt 18,250 18,698 20,531 19,042 17,658 15,756 15,279 14,353 12,889 12,243 Council’s gross debt is predicted to be $36m at the end of the 10 years – when offset against Limits on borrowings Council’s investments of $23.8m. While the gross debt has increased, it is the net debt being The limits for gross borrowings are based on debt servicing costs remaining below 10% of Total $12.2m which is the most relevant particularly from a risk point of view. Operating Revenue. Gross debt is $34.3m in 2018/19 and increases to $36m in 2027/28. Council The Treasury Management Policy has been developed to incorporate Council’s Banking is in compliance with all limits specified in the Treasury Management Policy and Financial Covenant which states that finance costs as a percentage of total operating revenue must not Prudence Benchmarks except for one year in the Plan. In 2020/2021 the net benchmark of $20m exceed 15%. Council expects to operate well under this limit over the life of the plan. In addition is exceeded as the result of borrowing for the Westport revitalisation project. Council is in compliance with all other limits specified in the Treasury Management Policy. The Treasury Management Policy has been aligned with external banking covenants. Council The increase in gross debt is to fund the asset development and programme planned within this is comfortable that debt levels are prudent and that debt servicing costs remain affordable in Long Term Plan as well as strategic asset purchases such as the Holcim site. Note that gross term the Long Term Plan. Council expects its liquid investments grow considerably over the duration debt is off-set by term deposits. The true net debt is the difference between the two. of the Long Term Plan therefore net debt is a more relevant measure. The net debt (defined as external borrowings less term deposits). Council has set its benchmark for net debt limit at Interest rates are historically very low. Council has taken external advice and has assumed that $20m. Council’s net debt at the beginning of this Long Term Plan is $18.2m and at the end of the the average interest rate paid on its loans will increase over the 10 years of the Long Term Plan. plan it is expected to be $12.2m The range of interest rates used in this plan is expected to be in the range of 4% to 6%. Investments Policy on giving securities for borrowings Council currently has term deposit investments of $15m and over the term of the Plan these term Council plans to continue to secure its borrowings and interest rate risk management deposits are planned to increase to $23.8m. This situation is kept under constant review and the instruments against rates and rates revenue. balance of the gross debt to investment could change if relative interest rates change. It is also considered prudent to grow the term deposits to cater for any natural disasters. Council will continue to monitor gross debt and the level of term deposits looking to minimise interest costs while maintaining prudent reserves. Bearing in mind there is a core amount of debt related to the acquisition of shares in Buller Recreation Limited where it is tax effective to not repay this debt.

Buller District Council | Draft Long Term Plan 2018-2028 39 | FINANCIAL OVERVIEW AND STRATEGY |

Council has a portfolio of other investments comprising: Council is currently in breach of the current Investment Policy with regard to investments in yy Term investments - as explained, short term investments are expected to increase due to building societies. The policy only allows a maximum of $1m investment. Currently Council has receipts from internal loans and sale of investment properties exceeded this by resolution. The reason for this breach is that the respective Building Society yy Equity investments - investments in Buller Holdings Limited are expected to increase over has provided sponsorship towards the Performing Arts Theatre. This will be re-assessed by the duration of the Long Term Plan. In 2018/2019 investments total $20.1m and increase Council when the sponsorship agreement ends in 2019. to $24.5m in 2027/2028 reflecting operating losses in Buller Recreation Limited and shares The full Treasury Management policy is included in this LTP and includes the rationale for issued to Council in exchange for the funding of capital expenditure for Buller Recreation holding these investments. Limited which will increase the investment accordingly yy Asset investments Council has a conservative approach to investments with surplus funds generally being used for debt repayment where appropriate rather than investment in financial assets. It does not intend yy Associated organisations- comprising of mainly community loans, which are not significant. to undertake investments in riskier financial assets such as equity investments, for the purpose yy Investment property - investment properties are forecast to be $8.2m in 2018/2019 and are of generating significant returns, now or in the future. planned to increase to $9.5m in 2027/2028 as a result of revaluation gains offset by sales of investment properties. Generally equity investments are held for strategic purposes such as investments in council Council will continue to review any investment opportunities that may continue to generate controlled organisations which enable councils to provide services more efficiently. Council’s long term benefits for the community. main investment is its shareholding in Buller Holdings. The main performance targets for Buller Holdings subsidiaries which are WestReef Services Limited and Buller Recreation Limited, are set out below:

Investment Target Return WestReef Services Ltd To achieve a pre-tax operating profit of at least 12% on gross revenues, before any subvention payments. Buller Recreation Ltd Achieve budget and expenditure targets. Buller Holdings Ltd Financial performance of the Group will be measured against the forecasts and KPI’s in the approved Statements of Intent.

FINANCIAL PRUDENCE BENCHMARKS On 1 May 2014 the Local Government (Financial Reporting and Prudence) Regulations 2014 were introduced. These regulations seeks to: yy assist in identifying local authorities where further enquiry is warranted in relation to their financial management; and yy promote prudent financial management by local authorities. The regulations prescribe how Councils must report these benchmarks and indicators in their Annual Plans, Annual Reports and Long Term Plans. The following benchmarks were introduced: Affordability benchmarks Rates affordability and rates increases benchmark Rates revenue and rates increases complies with the limits set in Council’s financial strategy. Debt affordability benchmark Debt complies with the limits set in Council’s financial strategy. Sustainability benchmarks Balanced budget benchmark Operating revenue, excluding development and financial contributions and revenue from revaluations, exceeds operating expenditure. Essential services benchmark Capital expenditure on the five network infrastructure services exceeds depreciation on those five services. Debt servicing benchmark Interest expense is less than 10% of operating revenue, as defined in the balanced budget benchmark.

40 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY |

Rate increases affordability benchmark

4.5%

4.0%

3.5% The total rates increases over the benchmark set in the Long Term Plan are explained below: 3.0% Year Main driver why benchmark is not met 2.5% 2018/19 Impact of Westport Water tunnel upgrades & transfer of Westport Harbour

(%) 2.0% 2019/20 Council expects to exceed the rates increase affordabiity benchmark due to funds

1.5% needed for debt servicing the Holcim loan. Quantified limit on total rates increases (2.4%) 2021/22 Council incurs debt servicing for new Civic Building , additonal Grants, Karamea 1.0% Predicted increase in Total Predicted total rates Highway divested to NZTA reduces weighted average of FAR, effect of increase in increases (at or within 0.5% limit) Westport Sewer Target rates Predicted total rates increases (exceeds limit)

Rateslongrun / LocalGovernement indexcost 0.0% 2025/26 Expected additional roading maintenance, general inspection costs and resource 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 management costs indicate the benchmark will not be met. Year

Rates income affordability benchmark

66.0%

64.0%

62.0%

60.0% Quantified limit on rates income/total income (65%) Actual rates income (at or within limit)

58.0%

56.0% Rates income / total income (%) income total / income Rates 54.0% 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Year

Buller District Council | Draft Long Term Plan 2018-2028 41 | FINANCIAL OVERVIEW AND STRATEGY |

Debt affordability benchmark

25,000

20,000

15,000

Quantified limit on net debt ($20 million) 10,000 Actual net debt (at or within limit) Net debt ($000) Net debt

5,000 Year Main driver why benchmark is not met

0 2020/21 Loans are drawn down for completion of Civic Building, plus Information Systems 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Enterprise Software. Year

Balanced budget benchmark 120%

100.8% 95.0% 94.8% 95.1% 94.7% 94.7% 98.1% 96.9% 95.7% 100% 92.6%

80%

60% 52.5% Benchmark met Year Main driver why benchmark is not met Benchmark not met 40% 2018/19 - Council’s expenditure is predicted to exceed income over the life of the Long 2027/28 Term Plan. This is primarily because the depreciation expense for roading 20% exceeds each years’ planned capital spend on the roading network. Revenue/operating expenditure (%) 2021/22 Council has recognised an asset write off totalling $21.5 million in respect to the 0% 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 proposed transfer of the Karamea Highway to NZTA. Year

42 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIAL OVERVIEW AND STRATEGY |

Essential services benchmark

220% 200% 180% 160% 144.3% 140% 120% 89.0% 100% Benchmark met Benchmark not met 80% 70.3% 70.1% 71.4% 68.1% 66.8% 67.2% 67.1% 64.9% 65.8% Year Main driver why benchmark is not met 60% 2017/18 During 2017/2018 the captial expenditure on the Westport Water Tunnels was 40% budgeted at a level that exceeds the annual depreciation. Capital expenditure / depreciation (%) depreciation / expenditure Capital 20% 2018/19 Council does not meet this benchmark through the life of the LTP primarily 0% 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 to because the roading asset renewals are set in conjuction with NZTA based on our Year 2027/28 actual roading network condition rather than the level of annual depreciation.

Debt servicing benchmark

12.0%

10.0%

8.0%

6.3% 6.3% 6.1% 6.1% 6.1% 5.9% 6.0% 5.6% 5.6% 5.7% 4.8% 4.9%

4.0%

2.0% Borrowing cost / revenue (%) Benchmark met 0.0% 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 Year

Buller District Council | Draft Long Term Plan 2018-2028 43 COMMUNITY OUTCOMES

1 ~ Well-being A vibrant, healthy and safe community with access to quality facilities and services.

2 ~ Learning A district that values and supports learning with accessible, relevant education and training opportunities.

3 ~ Who we are A ‘happening’ region with a strong community spirit and distinctive lifestyle.

4 ~ Sustainable Environment The distinctive character of the environment appreciated and retained.

5 ~ Prosperity A thriving resilient and innovative economy creating opportunities for growth and employment.

44 Buller District Council Draft Long Term Plan 2018-2028 | COMMUNITY OUTCOMES | PLANNING FOR OUR COMMUNITY TOGETHER

INTRODUCTION “Community Outcomes have been defined as what the community sees as important for the whole community now and looking forward.” These outcomes have been defined by the community and are not specifically restricted to Council functions, as they include everything the community sees as precedence for identifying who we are, how we stand, how we grow, what we value, and how we look after each other now and in the future.

HOW WILL THE COUNCIL CONTRIBUTE TO FURTHERING THE COMMUNITY OUTCOMES? The Community Outcomes have been identified as the areas of priority to the Buller district community for the next 10 years. These are the communities goals. Council is not solely responsible for the delivery of these outcomes. Rather, our role is to work with the community, other organisations and groups to help us achieve these outcomes as a community. Council’s role is to look at these outcomes and identify how we can assist the community meet these goals. When we develop our Long Term Plan and identify areas for funding and development we have these community’s goals in mind. Council fund a range of services or activities and these are identified later in this Long Term Plan. You will see that each activity statement identifies how the services we are providing is contributing towards furthering the community outcomes. Council has many roles in assisting the community and have listed some of these below. We have identified how we see Council’s role in assisting the community to further each of their outcomes.

Outcome Advocate Funder Service Provider Regulator Facilitator Monitor 1. Well-being • • • • • 2. Learning • • 3. Who we are • • • 4. Sustainable Environment • • • • • 5. Prosperity • • • •

This is a change that has arisen under the Local Government Act 2002. The Local Government Act 2002 requires Council to not just undertake particular tasks or activities, but to promote community well-being and to take a lead role in promoting the social, economic, environmental and cultural aspects of our district.

Buller District Council | Draft Long Term Plan 2018-2028 45 | COMMUNITY OUTCOMES | ACHIEVING THE COMMUNITY’S GOALS

Although we have a key role to play, Community Outcomes are not solely the responsibility of Councils. Council will ensure these Community Outcomes are considered in all decision making, this will include all reports to Council and resolutions actioned. Council will work now on making decisions that have a positive affect on these Community Outcomes and for the future benefit of the community.

1 ~ WELL-BEING Council is directly involved in: Council advocates: yy Provide access to quality amenities for physical activity yy Life expectancy yy Quality drinking water yy Access to health care (services & programmes) yy Number of traffic accidents yy New health initiatives that have been introduced yy Improved safety in public places (dog attacks, liquor bans, security cameras) yy Crime prevention measures introduced yy Emergency Management Programmes and preparedness yy Youth offending rates yy Number of consents being processed & signed off for completion yy Crime and crime resolution rates yy Unemployment & beneficiary recipient numbers

2 ~ LEARNING Council is directly involved in: Council advocates: yy Professional library services and a wide range of resources yy School rolls and decile ratings yy Levels of qualifications yy Number of education institutions yy Number of community education programmes being offered

46 Buller District Council | Draft Long Term Plan 2018-2028 | COMMUNITY OUTCOMES |

3 ~ WHO WE ARE Council is directly involved in: Council advocates: yy Number & usage of community facilities yy Number of community activities and district events yy Subsidies for hire of Council facilities for community based events yy Youth achievements - educational & recreational yy Voter turnout yy Number of people involved in sporting, cultural & recreational activities yy Number of new community groups introduced to community

4 ~ SUSTAINABLE ENVIRONMENT Council is directly involved in: Council advocates: yy Water management & quality yy Natural environment valued & protected yy Visitor level of appreciation yy Quality of natural environment improved & maintained yy Waste minimisation yy Access to natural features

5 ~ PROSPERITY Council is directly involved in: Council advocates: yy Employment levels & opportunities yy Average incomes - compared with national average yy Innovation & excellence yy Retail & investment growth yy Regional growth trends yy Telecommunications and IT

Along with relevant measures provided by other agencies we will be utilising data obtained from sources such as Statistics NZ Regional Performance Indicators and the Social Report Regional Indicators.

Buller District Council | Draft Long Term Plan 2018-2028 47 | COMMUNITY OUTCOMES | 1 ~ WELL-BEING

A vibrant, healthy & safe community with access to quality facilities & services

What does yy A healthy environment with services & infrastructure to support community health Council want yy A place where people feel welcome & have a sense of belonging to achieve? yy Increased community awareness & involvement in health issues yy Safer environments for residents, businesses & visitors to enjoy

How will Council yy Provide essential services to residents & businesses to support a healthy environment contribute to yy Provide & develop safe public places achieving these yy Promote opportunities for community access to health information & participation objectives? yy Advocate for the local community yy Establish an environment of support & assistance to health providers yy Recognise and support those with special needs and requirements yy Provide library services which are safe and pleasant environments for the community to interact

What yy Food premises inspections yy Health information provided at all libraries programmes yy Building Consent inspections & sign-offs yy Work closely with West Coast District Health Board and projects do yy Sewage disposal services yy Elderly housing we have or plan yy Waste management yy Council policies to have that will yy Water supply yy By-laws contribute to the yy Support alcohol & drug education initiatives yy Emergency management achievement of yy Support for community health initiatives yy Safety initiatives & projects this outcome? yy Sports & recreation facilities yy Security cameras, street lighting, road cleaning & vegetation control yy Cemetery management yy Consultation policies & practices yy Animal control activities yy Disabled access, building control/priority paths yy Liquor licensing & bans yy Timely & positive decisions for new development yy Enforcement & monitoring yy Assist to reduce smoking and alcohol abuse

48 Buller District Council | Draft Long Term Plan 2018-2028 2 ~ LEARNING

A district that values and supports learning with accessible, relevant education and training opportunities

What does yy Support for a community that values education Council want yy An increase in knowledge & understanding of Local Government & Democracy to achieve? yy Professional library services & a wide range of resources available

How will Council yy Provide a supportive environment for education providers contribute to yy Recognise & support education excellence & opportunity in the district achieving these yy Support the implementation of employment & training initiatives that offer improved employment, skill and income opportunities objectives? yy Make information easily available about Council, its functions & services

What yy Library services programmes yy Relationships with education providers and projects do yy Support for literacy programmes we have or plan yy Education Programmes (Learn to Swim) to have that will yy Provision of pool facilities & sports grounds contribute to the yy Youth voice development achievement of yy Support for learning & education initiatives & competitions this outcome? yy Support for school programmes & curriculum yy Advocate for IT and telecommunication services | COMMUNITY OUTCOMES | 3 ~ WHO WE ARE

A ‘happening’ region with a strong community spirit and distinctive lifestyle

What does yy An increased awareness of & participation in cultural, social, recreational, sporting & community activities Council want yy Provision of high quality community spaces & facilities to achieve? yy Promotion of Buller, history, environment & cultural heritage

How will Council yy Support & encourage community groups & organisations providing events within the region contribute to yy Provide opportunities for the community to work in partnership with Council achieving these yy Provide a range of arts, cultural, recreation, sporting & social facilities throughout the district objectives? yy Encourage & support other organisations in providing arts, cultural, sporting, recreational & social facilities throughout the district yy Celebrate community & individual’s achievements yy Provision of appropriate infrastructure to support a vibrant community yy Facilitate community grants process to assist in the provision of events & services that support a vibrant community

What yy Libraries, theatres, archives & heritage resources programmes yy Sports facilities & community halls and projects do yy Community grants we have or plan yy Administer Sport New Zealand grants to have that will yy Administer Creative New Zealand grants contribute to the yy Support to cultural organisations, such as museums achievement of yy On-going support for events this outcome? yy Provision of public toilets/facilities yy Maintenance of parks & reserves yy Roads & signage yy Urban design yy Cultural hub development yy Visitor information yy Economic Development

50 Buller District Council | Draft Long Term Plan 2018-2028 | COMMUNITY OUTCOMES | 4 ~ SUSTAINABLE ENVIRONMENT

The distinctive character of the environment appreciated and retained

What does yy An appropriate balance between development & protection that promotes the diversity & sustainability of our natural environment Council want yy The provision of services and infrastructure that support the district’s environmental goals to achieve? yy A built environment considered to be attractive, sustainable & healthy

How will Council yy Develop policies and implement practices that enhance our environmental sustainability & natural diversity contribute to yy Recognise & preserve the essential elements of the district’s landscape that contribute to Buller’s unique natural identity achieving these yy Ensure that planning processes enable effective public consultation over an appropriate balance between the natural & built environment objectives? yy Develop practices that help to improve the cleanliness & sustainability of the district’s infrastructure yy Access central Government funds to support infrastructure development and improvement

What yy District Plan & review thereof programmes yy Resource Consent process and projects do yy Monitoring & enforcement we have or plan yy Waste management to have that will yy Tourism planning contribute to the yy Road upgrade improvements achievement of yy Wastewater/sewerage projects this outcome? yy Parks & reserves maintenance yy Maintenance & development of walkways yy Support/implement community projects, ie, beach clean-ups yy Town planning/urban design

Buller District Council | Draft Long Term Plan 2018-2028 51 | COMMUNITY OUTCOMES | 5 ~ PROSPERITY

A thriving resilient and innovative economy creating opportunities for growth and employment

What does yy Provide an environment that supports the retention of current businesses & attracts new business & investment to the region Council want yy Provide support for attracting & developing an available skilled workforce to achieve? yy Support sustainable, responsible development, innovation & excellence yy Encourage economic growth

How will Council yy Improve communications between the Council & the business community contribute to yy Continue to develop & advocate for district-wide infrastructure that supports business & tourism growth achieving these yy Access central Government funds & programmes that can support development of infrastructure, tourism, employment, business & training objectives? yy Assist in strengthening links between schools, training opportunities & the business community yy Develop within a regulatory framework that supports sustainable economic growth without compromising the environment

What yy Support of i-Sites programmes yy Resource Consent & Building Consent liaison with businesses/developers and projects do yy Road improvements to support industry we have or plan yy Relationships with key industries to have that will yy Film & business friendly strategies contribute to the yy Street enhancements & urban design achievement of yy District Plan reviews this outcome? yy Transport infrastructure: airport/harbour/roading & active transport yy Support to health & education providers yy West Coast Development Trust yy Economic Development yy Advocacy for ultrafast bandwidth and mobile coverage

52 Buller District Council | Draft Long Term Plan 2018-2028 COUNCIL ACTIVITIES

INCLUDES:

Regulatory Services...... 55

Roading and Transport...... 59

Water Supplies...... 67

Wastewater/Sewerage...... 75

Stormwater...... 79

Solid Waste...... 83

Professional Services Business Unit ...... 86

Community Services...... 88

Governance and Representation...... 92

Customer Services and Support Services...... 96

Property...... 99

Council Controlled Organisations...... 105

Other Council Controlled Organisations...... 107

Buller District Council Draft Long Term Plan 2018-2028 53 COUNCIL ACTIVITIES

The work Council undertakes on behalf of its ratepayers includes, but is not limited to, each of the following WASTEWATER/SEWERAGE GOVERNANCE activities: yy Westport yy Leadership yy Reefton yy Advocacy REGULATORY SERVICES yy Little Wanganui yy Accountable stewardship of Council’s assets and resources yy Animal and stock control yy Plans, policies and guidance documents STORMWATER CUSTOMER SERVICES AND yy Provision of consents yy Hector SUPPORT SERVICES yy Ngakawau yy Building control yy Corporate planning yy Seddonville yy Compliance and enforcement management yy Financial and Accounting operations yy Granity yy Alcohol licensing yy Rating operations yy Waimangaroa yy Emergency management/civil defence yy Health and safety yy Westport yy Environmental health yy Asset management yy Carters Beach yy Management functions yy Reefton ROADING AND TRANSPORT yy Human resources management yy Sealed and unsealed roads yy Culverts SOLID WASTE PROPERTY yy Collection, transfer and final disposal of waste materials yy Bridges yy Public toilets yy Recycling yy Footpaths yy Amenities and reserves yy Landfill sites yy Seats and shelters yy Property management yy Monitors groundwater quality at landfill’s yy Road signs and markings yy Cemeteries yy Waste minimisation yy Street lighting yy Housing for the elderly yy Urban development PROFESSIONAL SERVICES BUSINESS COUNCIL CONTROLLED WATER SUPPLIES UNIT ORGANISATIONS yy Westport yy Engineering services yy Buller Holdings Limited yy Reefton yy Preparation of contracts yy WestReef Services Limited yy Waimangaroa yy Monitor contractors performance yy Buller Recreation Limited yy Ngakawau-Hector yy Organise work to be carried out y y Inangahua Junction OTHER COUNCIL CONTROLLED yy South Granity (tank supply) COMMUNITY SERVICES yy Little Wanganui yy Community grants and funding ORGANISATIONS yy Cape Foulwind yy Sports, recreation and cultural facilities and services yy Buller Health Trust yy Punakaiki yy Libraries yy Denniston Heritage Trust yy Mokihinui yy Communications yy Tourism West Coast yy Theatre/cinema yy Westport Airport yy Economic Development

54 Buller District Council Draft Long Term Plan 2018-2028 | REGULATORY SERVICES | REGULATORY SERVICES

yy Alcohol licensing ensures that the statutory requirements and Sustainable environment: WHAT DO WE DO? the objectives of the Sale and Supply of Alcohol Act 2012 are yy Develop policies and implement practices that enhance our yy Animal and stock control being met, in that the sale and supply of alcohol should be environmental sustainability and natural diversity. yy Plans, policies and guidance documents undertaken safely and responsibly, and any harm caused by yy Provision of consents excessive or inappropriate consumption of alcohol should be minimised. SIGNIFICANT ISSUES AND THEIR IMPACT yy Building control yy Under the Civil Defence Emergency Management Act 2002, One District Plan yy Compliance and enforcement management Council must be prepared to provide planning, response and The Local Government Commission has made a preliminary yy Alcohol licensing recovery in the event of an emergency. The Buller District has decision to transfer the statutory powers associated with district yy Emergency management and civil defence a full time Emergency Management Officer based in Westport plan making to the regional council. This concept is called The yy Environmental health after a West-Coast wide shared services arrangement was One District Plan and is subject to community consultation agreed with Grey District Council, Westland District Council, which is due to be completed during 2018. After consultation WHY ARE WE INVOLVED IN THESE and West Coast Regional Council. Council provides staff and the Local Government Commission may decide to proceed, do resources in the event of a Civil Defence Emergency. nothing or review another option such as amalgamation. ACTIVITIES? yy Environmental Health ensures that operators meet required It is proposed that the One District Plan will be governed by a Council undertakes these activities to contribute to public health standards. joint committee of elected members from all the councils with providing a safe, healthy and sustainable environment: support from staff across the region. This transfer is for plan yy The animal and stock control service aims to provide a COMMUNITY OUTCOMES AND HOW making only and Buller would still require a planning team to safer District by reducing dog-related offences through the process consents and administer the plan. As it is more than registration of dogs, the education of their owners and the WE CONTRIBUTE TO STRATEGIC GOALS likely Buller District Council will be involved in developing investigation of complaints. This activity supports the following community outcomes: the plan we have maintained status quo in terms of planning resourcing. yy The planning service ensures the District is able to promote Well-being: development to support a prosperous community without yy Provide essential services to residents and businesses to District Plan Review compromising rights of residents and the District’s physical and support a healthy environment. Council has been working on a “rolling” District Plan review. natural assets/resources. It achieves this aim by appropriate application of the Resource Management Act, through the yy Provide and develop safe public places. Freedom Camping Bylaw and the Bylaw reviews review and implementation of the District Plan and its resource yy Emergency management is a key function in ensuring that There are 16 bylaw reviews due to be completed throughout consent and monitoring functions. injury to people is minimised in the event of natural disasters. year 1 of the Long Term Plan which is a significant workload. yy The safety of people and their property is the paramount yy Council’s building control services ensures that the District’s Joint compliance and monitoring between all West Coast concern of emergency management plans and processes. buildings and other associated structures (such as swimming Councils for freedom camping is being considered, and the pools) are safe, habitable and meet national legislative Learning: Bylaw expires during year-2 of the Long Term Plan. requirements. Of particular importance is Council’s role in yy Make information easily available about Council, its advising on and where necessary enforcing the statutory functions and services. provisions relating to earthquake prone buildings. yy Recognise and support education excellence and yy Compliance and enforcement management activities focus on opportunity in the district. working with the community to ensure the District remains a peaceful and attractive place to live and work. By the careful Who we are: application of Bylaws and other legal mechanisms, Council aims yy Support and encourage community groups and to reduce littering, effectively manage freedom camping and organisations providing events within the District. respond to noise nuisances, as well as encourage residents to yy Provide opportunities for the community to work in maintain tidy sections. partnership with Council.

Buller District Council | Draft Long Term Plan 2018-2028 55 | REGULATORY SERVICES |

Civil Defence and Climate Change Council will undertake a significant review during 2018/19 to analyse the risks of climate change FUNDING ALLOCATIONS for the District. The storm events of Cylone Fehi and Cylone Gita in early 2018 highlighted how Funding mechanism climate change may seriously impact Council infrastructure and provision of services, as well as Activity our wider community. Climate change issues have a link with the Civil Defence activity that is General rate Fees Capital spend budgeted for and undertaken by Council because climate change must be factored in to future Resource management planning 90-95% 5-10% Depreciation emergency planning. Reserves, In this Long Term Plan Council no longer funds direct staff costs for the Emergency Management Loans Officer (as these costs are now met by the West Coast Regional Council). Instead, Buller District Resource consents 5-10% 90-95% Depreciation Council provides funding for emergency preparedness throughout the District, over the 10 years Reserves, of the plan. Loans Building control 10-20% 80-90% Depreciation CAPITAL EXPENDITURE Reserves, Significant capital expenditure includes: Loans Animal control - dogs 25% 75% Nil Purchase of vehicles Animal control - stock 70-80% 20-30% Nil yy 2020/2021 $31,000; yy 2023/2024 $66,000 (two vehicles); and Environmental health - food premises 25-35% 65-75% Nil yy 2027/2028: $36,000. Environmental health - liquor licensing 10-25% 75-90% Nil Environmental health - noise 90-95% 5-10% Nil Emergency services – civil defence 100% Nil Nil

56 Buller District Council | Draft Long Term Plan 2018-2028 | REGULATORY SERVICES |

KEY PERFORMANCE INDICATORS What we plan to do and our levels of service 1. To maintain quality of life through ensuring compliance with building and development regulations How we do it yy Process and grant building consents yy Process and grant resource consents How we measure Ensure quality assurance requirements Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance for building consent authorities are 2016/17: the biennial IANZ Audit was carried Continue to retain accreditation by Continue to retain accreditation by met as required by Regulation 17 of the out in December 2017 with a Certificate of passing the biannual IANZ Audits. passing the biannual IANZ Audits. Building Consent Authorities Regulation Accreditation granted on 14 February 2018. 2006. (2015/16: no audit was due or carried out during this year). Process non-notified resource consents 2016/17: 100% achieved within statutory Continue to achieve 100% within Continue to achieve 100% within within statutory timelines. timeframes. statutory timeframes. statutory timeframes. (2015/16: 100% achieved within statutory timeframes). 2. To maintain quality of life through ensuring the health and safety of licenced activities How we do it yy Inspect and/or audit registered food premises and health premises How we measure Inspect all food premises, hairdressers, Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance funeral homes, camping grounds and 2016/17: 100% achieved, 100 premises Continue to achieve 100%. Continue to achieve 100%. offensive traders, ensuring they meet the inspected. Food Hygiene Regulations 1974 and the new Food Act 2014. No significant findings. Existing businesses (registered under the Food Act 1981 or the Food Hygiene Regulations 1974 before 29 February 2016) will move to the new Food Act 2014 between 2016 and 2019. (2015/16: 100% achieved, 87 premises inspected). 3. To establish an effective level of preparedness for Civil Defence disasters How we do it yy Monitor and train volunteers How we measure Maintain three teams of trained Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance volunteers, 30 trained volunteers. 2016/17: Granity, Karamea, Westport and Maintain 3 teams of trained Maintain 3 teams of trained volunteers. Reefton teams, consisting of 120 volunteers, volunteers. are in training and undergoing a restructure of their groups.

Buller District Council | Draft Long Term Plan 2018-2028 57 | REGULATORY SERVICES |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 REGULATORY SERVICES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 984 1,023 1,068 1,031 1,081 1,156 1,196 1,190 1,254 1,223 1,274 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 894 880 898 916 935 956 978 1,000 1,024 1,050 1,076 Total Operating Funding A 1,878 1,903 1,966 1,947 2,016 2,111 2,173 2,190 2,278 2,273 2,350 Applications of Operating Funding Payments to suppliers and staff 1,318 1,398 1,447 1,448 1,502 1,504 1,562 1,565 1,628 1,633 1,700 Finance costs 9 6 5 2 4 3 3 2 1 0 0 Internal charges and overheads applied 535 453 470 449 457 560 554 561 585 575 586 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 1,862 1,856 1,922 1,899 1,963 2,067 2,119 2,128 2,214 2,208 2,287 Surplus/ (deficit) of Operating Funding A-B 16 47 44 48 53 44 55 62 63 65 64

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 105 50 51 52 53 27 28 28 29 30 31 Increase/(decrease) in debt (23) (7) (7) (8) (8) (9) (10) (10) (11) (6) 0 Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 82 43 44 44 45 18 18 18 18 24 31 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 39 2 0 31 32 38 67 0 35 0 79 Increase/ (decrease) in reserves 59 89 88 61 66 24 6 80 46 89 15 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 98 90 88 92 98 62 73 80 81 89 94 Surplus/ (deficit) of Capital Funding C-D (16) (47) (44) (48) (53) (44) (55) (62) (63) (65) (64) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

58 Buller District Council | Draft Long Term Plan 2018-2028 | ROADING AND TRANSPORT | ROADING AND TRANSPORT

Roading Activity WHAT DO WE DO? or much higher useoverall would lead to higher costs). NEGATIVE EFFECTS The roading activity provides for the planning, operations, Council assumes that fuel tax rates remain at the current level Roads can disrupt natural drainage patterns, introduce maintenance, development and improvements to the roading and that fuel consumption remains at the current level (as contaminants into the stormwater and change the landscape. network so that it is affordable, integrated, safe, responsive and fuel tax received helps to offset the cost of providing roading The purpose of the road management systems is to sustainable. throughout the district) minimise these effects, while still providing a safe platform for development. There can be significant negative effects Council provides, maintains and renews sealed and unsealed The Long Term Plan also assumes that the present levels of if the roading network is inadequate or under maintained. roads, bridges and culverts to enable people and businesses service applied to the District’s roads will not be materially Inadequately maintained roads are an increased safety risk to move around for employment, recreation, shopping, different from any new levels established by any review of the and they significantly increase travel and renewal costs. This social activities and business purposes. It also provides road One Network Road Classifications. risk is mitigated by ensuring that renewals are undertaken signs, markings and street lighting to ensure that travel is in line with the Roading Asset Management Plan. This plan safe and convenient. Council improves the road network to Roading Funding ensures that road and footpath maintenance is undertaken meet changing needs and develops plans to ensure the road The New Zealand Transport Agency (NZTA) regularly reviews at the optimum level to maintain the current level of service network is able to cater for future growth. its Financial Assistance Rate (FAR) provided to Council roading provided. programmes. The current FAR rate is 63% of all spending, except for a Special Highway 100% Assistance Rate which WHY ARE WE INVOLVED IN THIS applies for the Karamea Highway. The most recent review has COMMUNITY OUTCOMES AND HOW ACTIVITY? established a new general financial assistance rate of 64% for the 2018/19 year, and this rate will increase by 1% each year WE CONTRIBUTE TO STRATEGIC GOALS The roading activity provides people with access to thereafter until it reaches 66%. The Special Purpose Road (SPR) This activity supports the following community outcomes: employment, services, education and recreation, as well as 100% Assistance Rate is guaranteed until 2021/22 only. At that providing for the movement of goods and services to support time a review for all financial assistance roading programmes Sustainable Environment the local economy. The road corridor also provides access for will be revised in terms of the One Network Road Classifications yy By providing a safe roading system. critical services such as electricity, telecommunications, water system. For the purposes of this Long Term Plan we have yy By helping reduce energy consumption in our community. supply and waste disposal. reduced the funding rate down from 66% to 61% from 2021/22 onward. Prosperity yy By providing everyone easy access to roading network ASSUMPTIONS Council have a number of bridges scheduled for replacement yy By providing links to sustain rural communities. That New Zealand Transport Agency will provide funding on the basis of the last bridge inspection and the age of the for local roads at 64% for 2018/19, 65% for 2019/20 and 66% structure. Prior to undertaking the replacement Council will Learning for 2020/21 and thereafter reducing to 61%. Funding for investigate options to extend lives, this may require additional yy By providing education programmes. the Karamea Highway which is a Special Purpose Road is funding for structures component replacement. Bridges that maintained at 100% for the next three years, and in 2021/22 are replaced will be funded out of Minor Improvements and/ this Highway converts to State Highway and therefore all costs or loans. and assets relating to the Karamea Highway are removed from the Long Term Plan. In 2019/20 the Rough River Bridge, on the boundary of Buller and Grey Districts, requires replacement. Buller Traffic volumes and makeup will continue at current trends (as District Council’s contribution is budgeted to be $1.1m. This significantly more heavy vehicles on the local roading network, expenditure is to be funded by debt.

Buller District Council | Draft Long Term Plan 2018-2028 59 | ROADING AND TRANSPORT |

SIGNIFICANT CAPITAL EXPENDITURE ONE NETWORK ROAD KARAMEA SPECIAL PURPOSE ROAD Local roads $10.6m over 10-years of the Long Term Plan. CLASSIFICATION SYSTEM The Karamea Special Purpose Road was previously state highway and following agreement was transferred to Buller The roading network is independently audited by NZTA and This is a joint initiative between the New Zealand Transport District Council management with 100% subsidy from NZTA as compared to other similar Councils. Buller District Council Agency and Local Government New Zealand has introduced a a designated Special Purpose Road. This road provides a vital roads are demonstrated to be in very good condition. Buller road classification system for all roads in New Zealand. lifeline to the Karamea community, Heaphy Track terminus and ranked third-best value for “provincial centres” national peer it takes significant amounts of daily dairy tanker traffic. group based on maintenance, operations and renewal costs The classification system aims: per kilometre. yy to deliver similar driving experience across New Zealand. An estimated $60m of agricultural product passes across the road each year, with tourist traffic providing additional This means the roading network is in good condition and yy to support more consistent asset management across the economic value to the area. effectively managed. As a result of Council’s past ability to Country. keep the roading network in excellent condition without yy to make collaboration and prioritisation between those The Karamea Special Purpose Road transits very difficult terrain overspending, we are well placed to maintain a quality roading organisations responsible for the planning, delivery, with sheer cliffs, bluffs and drops either side of the road. The network without fully matching depreciation expense in each operation and maintenance of the nation’s roading network, known original construction methodology of a tree trunk base and every year of the plan. leading to a more efficient and safer network and improved ‘corduroy’ foundation has made the road very susceptible to value for money. large slumping and drop outs as the old tree trunks rot and This will introduce different levels of service across roads of compact. BRIDGE REPLACEMENT PROGRAMME: different classification. This allows the Agency and the Road The issues associated with the management and maintenance 2019/2020 - Rough River ($1.1m) Controlling Authority better information on which to make of the Karamea Special Purpose Road are known and managed better investment decisions. 2024/2025 - Brown Grey Bridge ($376,000) where possible. Due to the original construction and physical 2025/2026 - Kelly Creek, Arapito ($107,000) The Council has undertaken the classification using the terrain, risk mitigation at reasonable cost is determined on a 2026/2027 - Chasm No. 2 and Charming Creek ($116,000) criteria developed by the joint initiative. The Council has case by case basis. also collaborated with Westland and Grey District Councils to The long term costs of maintaining and keeping the Karamea ensure that there is regional consistency. The Councils have Special Purpose Road in operation are unknown, but will FUNDING ALLOCATIONS collectively looked at the criteria that are important to the be considerable given the nature of the terrain it traverses. region and they have been used to refine the categories. Funding Mechanism Similar roads in New Zealand are State Highway 60 (Motueka Council has assumed that there will be no change in the levels to Collingwood) and State Highway 2 (Wairoa to Gisborne). All Activity Year General Financial Capital of service currently provided. If a change in service levels does three roads experience similar terrain induced maintenance Rate Assistance Spend eventuate during the term of the Plan, our Council will be faced issues, with State Highway 60 and 2 being fully managed and Roading 2018/19 36% 64% Depreciation with two choices: maintained by NZTA and their contractors. 2019/20 35% 65% Loans 1. Change the current level of service provided to that set by In 2021/22 it is expected the Karamea Special Purpose Road 2020/21 34% 66% Subsidy NZTA. will lose its special designation and revert from 100% subsidy to State Highway status and therefore no longer be subject to from NZTA 2. Fund the difference between the current service level and 2021/22 39% 61% Buller District Council management. onward that proposed by NZTA from ratepayer contributions.

60 Buller District Council | Draft Long Term Plan 2018-2028 | ROADING AND TRANSPORT |

CUSTOMER LEVEL OF SERVICE 2018-2028: LINKAGE WITH COUNCIL OUTCOMES Objective: To provide and maintain a network of roads for the movement of vehicles, goods and people in a safe and efficient manner throughout the District in accordance with Council and NZTA Standards.

Roading contribution to the achievement of the outcomes defined: To provide a safe, reliable, economic and efficient roading and pedestrian network in harmony with the natural environment and representing best values.

Council Outcome Key Role of the Roading Activity Partial Role of the Roading Key Service Criteria Activity Well-being A vibrant, healthy and safe community Roading provides residents access across the district Roading provides opportunities Are the roads safe? with access to quality facilities and to facilities and services. for active transportation. Are the Footpaths comfortable to walk services. on? Road safety is an integral part of the roading activity. Are the roads ‘fit for purpose’? Learning A district that values and supports Roading provides access across the district to Are the footpaths comfortable to walk on? learning with accessible relevant learning opportunities. education and training opportunities. Who are we A happening district with a strong Roading connects communities. Are the roads ‘fit for purpose’? community spirit and distinctive lifestyle. Sustainable The distinctive character of the Roading provides access for residents and visitors Roading provides opportunities Are the footpaths comfortable to walk on? Environment environment appreciated and retained. while not adversely affecting the environment for active transportation. Is the environment being harmed? Prosperity Thriving, resilient and innovative Roading supports the economy through the Are the roads safe? economy creating opportunities for provision of a quality network. Are the roads comfortable to drive on? growth and employment. Are the footpaths comfortable to walk on? Are the roads ‘fit for purpose’?

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MANDATORY PERFORMANCE MEASURES What we plan to do and our levels of service 1. Provide a safe roading network How we do it yy Provision of a safe sealed roading network yy Provision of a sealed roading network that is fit for purpose yy Provision of footpaths that are comfortable to walk on How we measure Mandatory performance measure one: Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance road safety. 2017: 1 fatalities, 5 serious accidents. No change or reduction in the quality of No change or reduction in the quality of the roading network. the roading network. The reduction from the previous (2016: 0 fatalities, 7 serious accidents, financial year in the number of fatalities 2015: 2 fatalities, 4 serious accidents). and serious injury crashes on the local road network, expressed as a number. 2. Provide a comfortable road network How we do it yy Provision of a safe sealed roading network yy Provision of a sealed roading network that is fit for purpose yy Provision of a well maintained sealed roading network How we measure Mandatory performance measure two: Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance condition of the sealed road network. 2016/2017: current smooth travel ≤ 90 NAASRA count/km road roughness ≤ 90 NAASRA count/km road roughness The average quality of ride on a sealed local exposure is 94% with the two-year testing (allow for some decrease on low testing (allow for some decrease on low road network, measured by smooth travel average being 95%. hierarchy roads). hierarchy roads). exposure. (2015/2016: 96%). Traffic counts are not carried out frequently, a program has been set up to address this. Traffic counts form part of the STE formula but the reported STE is correct because it aligns with the state highway counts (which has also not shown any major movement) over the last five years, excluding roads affected by the Kaikoura earthquake. Mandatory performance measure Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 three: 2016/2017: 5.79% with the 10 year Continue to achieve ≥ 5.8% 10 year Continue to achieve ≥ 5.8% 10 year Maintenance of a sealed local road network. average being 5.6%. average (allow for some decrease on low average (allow for some decrease on low hierarchy roads). hierarchy roads). The percentage of the sealed local road (2015/2016: 5.56%). network that is resurfaced.

Unsealed network - metal on unsealed 2016/2017: 6,125m3 2,200m3 when averaged over three 2,200m3 when averaged over three roads lost due to weather, usage and years. years. (2015/2016: 7,333m3, 2014/2015: other factors will be replaced. 2,978m3)

3. Provide usable footpaths 62 Buller District Council | Draft Long Term Plan 2018-2028 | ROADING AND TRANSPORT |

What we plan to do and our levels of service How we do it yy Provision of footpaths that are comfortable to walk on How we measure Mandatory performance measure four: Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance Maintain the condition of footpaths 2016/2017: 84% of the footpath is Continue to achieve 75% Continue to achieve 75% within the local road network. ranked as grade 1&2 (satisfactory) by MWH. (2015/2016: 77%). The percentage of footpaths within 2016/2017: 99% of the footpath is Continue to achieve ≥ 95% Continue to achieve ≥ 95% a territorial authority district that fall ranked as grade 1-3 (satisfactory or within the level of service or service deficient) by MWH. standard for the condition of footpaths (2015/2016: 97%). that is set out in the territorial authority’s relevant document (such as its Annual Plan, Activity Management Plan, Asset Management Plan, annual works program or Long Term Plan). 4. Provide roads with the minimum environmental impact How we do it yy Provision of roading network with minimal impact to the environment How we measure Ensure compliance of Resource Consent Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance conditions through monitoring records 2016/2017: No prosecutions. Continue to achieve no prosecutions Continue to achieve no prosecutions and West Coast Regional Council correspondence. (2015/2016: No prosecutions). Ensure no prosecutions take place. 5. Customer Service Satisfaction How we do it yy Provision of customer service request system How we measure Mandatory performance measure five: Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance road safety. 2016/2017: 64% - the customer service Achieve 80% Achieve 80% Ensure that the percentage of customer request model is currently under review service requests relating to roads to improve the process. and footpaths to which the territorial (2015/2016: 89%) authority responds to within 15 days.

Efficiency, effectiveness and value for money These key objectives and indicators for both Council and New Zealand Transport Agency. It is proposed that a suite of measures will be established as part of the implementation of the One Network Road Classifications System (ONRC).

Buller District Council | Draft Long Term Plan 2018-2028 63 | ROADING AND TRANSPORT | Transport Activity yy By promoting cycleways and walkways, signs and WHAT DO WE DO? ASSUMPTIONS wayfinding, and parking infrastructure The transport activity provides for the planning, operations, That New Zealand Transport Agency (NZTA) will provide maintenance, development and improvements to the funding for certain transport activities including public Prosperity transport network so that it is affordable, integrated, safe, transport services and some transport planning at 64% of the yy By providing everyone easy access to the greater roading responsive and sustainable. Although having strong links cost in year one and this will be further increased by 1% each network by providing links to sustain rural communities. with Roading, Transport offers newly established programs of for the next two years from 64% to 66% in year 3 of the Long yy By providing assistance with public transport. work and budgets. These programs include public transport Term Plan. services, cycle and walkways, signs and wayfinding, parking Land use will remain at current patterns and there will be no Learning infrastructure, footpaths and pedestrian access mobility plans large industrial or residential developments outside of the yy By providing education programmes. (PAMP). current land areas. Council provides, maintains and renews footpaths, seats and SIGNIFICANT CAPITAL EXPENDITURE shelters to enable people and businesses to move around NEGATIVE EFFECTS Lighting and Street Development are progressively renewed for employment, recreation, shopping, social activities and and improved ($194,000 over the 10 years of the Long Term business purposes. It also provides road signs, markings and Transport infrastructure can disrupt natural drainage patterns, Plan). street lighting to ensure that travel is safe and convenient. introduce contaminants into the stormwater and change Council improves the transport network to meet changing the amenity value of the landscape. The purpose of the Footpaths are progressively renewed/resurfaced to provide a needs and develops plans to ensure the transport network is transport management systems is to minimise these effects, safe environment ($2.2m over the 10 years of the Long Term able to cater for future growth. Council also provides support while still providing a safe platform for development. There Plan). for the continued operation of the Westport Taxi services which can be significant negative effects if the footpath network is provide public transport. inadequate or under maintained. Inadequately maintained footpaths are an increased safety risk and they significantly FUNDING ALLOCATIONS Urban Development is undertaken to provide a more pleasant increase renewal costs. This risk is mitigated by ensuring that Activity Funding Mechanism environment for our communities by use of plantings, street renewals are undertaken in line with an Asset Management treatment and decorative measures. This extends to the Plan. This plan ensures that footpath maintenance is Year General Financial Capital beautification of main thoroughfares with street flags and undertaken at the optimum level to maintain the current level Rate Assistance Spend hanging floral baskets. of service provided. Public Transport 2018/19 36% 64% Subsidy from Subsidy; and NZTA 2019/20 35% 65% WHY ARE WE INVOLVED IN THIS Transport HOW DO WE CONTRIBUTE TO Planning 2020/21 34% 66% ACTIVITY? STRATEGIC GOALS & COMMUNITY 2018/25 39% 61% The Transport activity allows the community to travel to Urban 100% Nil Depreciation employment, services, education and recreation activities. OUTCOMES? Development Loans Benefits include a more active and healthy community, This activity supports the following community outcomes: encouraging residents and visitors alike to explore and experience our amazing district and generally improve well- Sustainable Environment being and sense of community. yy By providing a safe footpath system. yy By helping reduce energy consumption in our community. yy By creating relationships within the community that contribute to the overall beautification of our transport spaces and ensure that mobility issues are addressed for all stakeholders

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CUSTOMER LEVEL OF SERVICE 2018-2028: LINKAGE WITH COUNCIL OUTCOMES Objective: To provide and maintain a transport network for the movement of people in a safe and efficient manner throughout the District in accordance with Council and NZTA Standards. Transport Contribution to the achievement of the outcomes defined: Provide a safe, reliable, economic and efficient transport and pedestrian network in harmony with the natural environment and representing best values.

Council Outcome Key Role of the Transport Activity Partial Role of the Transport Activity Key Service Criteria Well-being A vibrant, healthy and safe community with Transport provides residents access Transport provides opportunities for Are the footpaths safe? access to quality facilities and services. across the district to facilities and active transportation. services. Road safety is an integral part of the Transport provides opportunities Are the Footpaths comfortable to walk transport activity. community input via the Pedestrian on? Access Mobility Plan (PAMP) Are the footpaths and urban spaces ‘fit for purpose’? Learning A district that values and supports learning Transport provides access across the Are the footpaths comfortable to walk with accessible relevant education and training district to learning opportunities. on? opportunities. Who are we A happening district with a strong community Transport connects communities. Are the footpaths ‘fit for purpose’? spirit and distinctive lifestyle. Sustainable The distinctive character of the environment Transport provides access for residents Transport provides opportunities Are the footpaths comfortable to walk Environment appreciated and retained. and visitors while not adversely community input via the Pedestrian on? affecting the environment Access Mobility Plan (PAMP) Is the environment being harmed? Prosperity Thriving, resilient and innovative economy Transport supports the economy Are the footpaths and urban areas safe? creating opportunities for growth and through the provision of a quality Are the footpaths comfortable to walk employment. network. on? Are the footpaths comfortable to walk on? Are the footpaths and urban spaces ‘fit for purpose’?

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 ROADING AND TRANSPORT $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 2,133 1,941 2,005 2,011 2,210 2,362 2,281 2,345 2,517 2,516 2,579 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 2,191 2,176 2,250 2,326 1,725 1,767 1,809 1,854 1,903 1,954 2,009 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 150 150 153 157 160 164 168 172 177 182 187 Total Operating Funding A 4,474 4,268 4,408 4,493 4,096 4,293 4,258 4,371 4,597 4,652 4,774 Applications of Operating Funding Payments to suppliers and staff 3,156 2,763 3,897 2,886 2,486 2,545 2,606 2,672 2,741 2,815 2,893 Finance costs 6 5 5 58 57 56 55 53 52 51 50 Internal charges and overheads applied 627 846 923 874 802 862 871 895 915 933 954 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 3,789 3,614 4,825 3,818 3,345 3,463 3,532 3,620 3,708 3,799 3,896 Surplus/ (deficit) of Operating Funding A-B 685 653 (417) 675 751 830 726 752 889 853 878

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 1,155 1,067 1,102 1,138 723 679 820 834 739 819 842 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (3) (5) 1,068 (21) (22) (23) (24) (25) (27) (28) (29) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 1,152 1,063 2,170 1,117 701 656 796 809 712 791 812 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 185 246 251 257 263 269 276 283 290 298 306 - to replace existing assets 1,652 1,438 1,470 1,502 1,155 1,182 1,211 1,241 1,273 1,308 1,344 Increase/ (decrease) in reserves 0 32 33 33 34 35 36 37 38 39 40 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 1,837 1,716 1,754 1,792 1,452 1,486 1,522 1,560 1,601 1,644 1,690 Surplus/ (deficit) of Capital Funding C-D (685) (653) 417 (675) (751) (830) (726) (752) (889) (853) (878) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

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Aligned to our five-point plan, Council is targeting the WHAT DO WE DO? OPPORTUNITIES AND RISKS following direct action initiatives: Council provides the management of water supplies to support yy Water Safety Plans and Catchment Risk Assessments the health and well-being of the community. Drinking Water Supplies - overview Council remains committed to working with district yy Resource Consents, Easements and Land Acquisitions Why are we involved in this activity? communites to provide drinking water supplies that are yy Water Supply Bylaw yy Accountability for delivering the water supply work program Water is an essential need for individuals and commercial affordable and meet the required service levels . y operations. Council provides sufficient quantities of potable There are currently eight drinking water supplies for which y Best practice project delivery model to ensure successful water for domestic and commercial needs, public amenities Council are registered under section 68J of the Health Act outcomes and to avoid the risk of public borne diseases affecting public 1956: The Ministry of Health has provided the following statement in health. Council water management is required under a number yy Hector-Ngakawau regard to Council’s role as a registered drinking water supplier: of legal statutes. yy Inangahua Junction “The Ministry of Health acknowledges the Buller District Council’s yy Little Wanganui strategic direction in managing drinking water infrastructure ASSUMPTIONS yy Mokihinui within its District. Councils are ideally placed to provide these There will be no significant change to current water demand yy Punakaiki services to fulfil their obligations under the Local Government from any of the Council water supplies. yy Reefton Act, Resource Management Act and Health Act as they relate y to the provision of safe drinking water. The safe operation There will be no major infrastructure failures. y Waimangaroa yy Westport of drinking water supplies requires specific expertise and co- Capital funding assistance will be available through the ordination between agencies to ensure management is holistic As Council is ultimately responsible under legislation, it is and sustainable. Failure in these key areas were identified Ministry of Health to provide financial assistance to those water incumbent to ensure all of these drinking water supplies supplies where treatment upgrades have been provided for. as contributing factors to the Havelock North water supply provide safe, reliable and adequate drinking water in contamination incident.” However it should be noted that there can be no certainty compliance with: regarding the receipt of the subsidy from the Drinking Water y Assistance Programme (DWAP) and should the subsidy not y Health (Drinking Water) Amendment Act 2007 Havelock North y be approved, there would need to be consultation with the y Drinking Water Standards of New Zealand 2005 (rev 2008) Council is aware of and is closely following the national community and the decision to upgrade or not would be conversation about public water safety that is occurring based on affordability. There would also be timing changes in Five-Point Plan Council accepts its responsibilities and will take all practicable following the findings of the Government Inquiry into Havelock the receipt of the subsidy if delays occur in the completion of steps to ensure the health and well-being of all consumers. North. The Inquiry findings have not yet been adopted by the capital upgrade programme. This will be achieved through the strategic direction government, or translated into changed legislation, regulations outlined by our five-point plan: or drinking water quality standards. 1. Responsibility - Waterworks owned or under the control of Council has considered the wide range of possible implications the Water Supplier to public water supply service delivery following the Inquiry, 2. Authority - Relevant consents and access permissions held including the potential for higher treatment standards, by the Water Supplier changes to quality standards, and higher costs of service 3. Application - Protection of waterworks, environment and delivery. public safety 4. Coordination - Organised management of water supply programs of work 5. Implementation - Best-practice processes for delivering water supply projects

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The key messaging and specific priority issues currently throughout Westport with new 50mm polythene. This will include: improve pressure and flow to these areas currently serviced by REEFTON WATER SUPPLY yy Bringing all drinking water supplies up to DWSNZ 25mm mains. Pipe renewal programs will continue and Council will continue compliance Council will continue to investigate installing water meters for to carry out leak detection work as water usage continues to yy Residual disinfectant e.g. chlorination for all ground water ‘high use’ consumers throughout the District water supplies. be higher than expected. Some modifications are planned supplies to the Reefton Water Treatment Plant with $60,000 expected yy Appropriate training and credentials for water supply to be spent in year one of the Long Term Plan on new UV and personnel RURAL DRINKING WATER UPGRADES pumping equipment to maintain the supply. There is no doubt that future changes will increase costs of Waimangaroa drinking water for all registered supplies. What hasn’t been A proposed Waimangaroa drinking water supply upgrade PUNAKAIKI WATER SUPPLY clarified on a national level is who will pay, and to what extent. did not proceed when serious storm damage to the primary Council has investigated improving the operational In some cases eg, an already compliant system, the cost raw water intake meant that the previously approved scheme effectiveness of the Punakaiki Water Treatment Plant because impact may be minimal. However, in other cases it could be would no longer be viable. despite this supply being upgraded in 2011/12 changing intake substantial. water quality and operational issues have plagued the supply Currently Council staff are working with the Waimangaroa Affordability is the districts biggest challenge, especially for resulting in multiple boiled water notices being issued to the Water Board to establish a possible long term bore solution. community. the small ratepayer-base rural supplies. Whilst the Inquiry has The Ministry of Health has been advised of the situation and made its recommendations, the Government is yet to adopt agreed to put the original application and subsidy on hold. An $105,000 is budgeted to be spent for the year end 2018 to into legislation, or address what financial assistance (if any) and estimate of $473,692 to complete the capital work upgrade has improve the operation the plant of the plant and reduce under what framework would accompany new compliance been provided for in year one of the Long Term Plan. However the amount of times boil water notices are imposed on the requirements. the final costs are not known until the location and design of community. This work is currently underway. Therefore, Council has decided to wait until the new regulatory a new system is known. When the cost of future requirements In year 1 of the Long Term Plan $175,000 is budgeted to add environment is settled before re-engaging with Buller has been established a revised Waimangaroa water rate will be additional treated water storage to enable seven days treated communities on water supply changes and new requirements. required water storage availability. This will enable sufficient treated The financial implications of any changes will be addressed at water is available during periods of poor water quality being that time. If required Council will use Annual Plan processes to Ngakawau-Hector delivered to the water treatment plant. introduce and consult on changed water supply requirements. A proposed Ngakawau/Hector drinking water supply upgrade Buller District Council are leading a masterplan process for did not proceed due to lack of community support and issues Punakaiki in 2018/19 in conjunction with Department of around scheme design and ownership. Council will continue WESTPORT AND CARTERS BEACH Conservation, Grey District Council and West Coast Regional to work with the Ngakawau/Hector community to resolve Council. One part of this masterplan is to ensure that the the issues associated with the scheme. For the purposes of WATER SUPPLY infrastructure is ‘fit for the future’. This is a significant project the Long Term Plan it is assumed that there will be no capital Significant work has been undertaken to upgrade the Westport and Council has a key role in advocacy and facilitation. Water Supply Treatment Plant and ensure the water fully expenditure in order for the supply to meet the NZ Drinking complies with NZ Drinking Water Standards. Water Standards however Council has a commitment to continue working with the community to ensure the supply Note: A collapse in the Westport Water No1 tunnel which supplies meets legislative requirements. Council has assumed, for the purposes of the Long Term Plan, raw water to the Westport Water Treatment Plant is currently that all these upgrades will continue. However major rural under tender negotiations to repair and reinstate the gravity Inangahua Junction drinking water upgrades are contingent on financial assistance fed supply of raw water. The future of the Westport Water being provided from the central government funded Drinking The Inangahua Water Supply has recently been upgraded Tunnels and the delivery of raw water is the biggest challenge Water Assistance Programme, and the decision on overall to meet NZ Drinking Water Standards and there is no other facing Westport and Carters Beach water supply. This affordability by the community. significant infrastructure failure means that the targeted water significant capital work planned. rate for consumers on this supply must increase to cover the unexpected cost. Other rural water supplies There is no significant capital work planned for Little Wanganui Pipe renewal programs will continue to upgrade levels of Water Supply, Cape Foulwind Water Supply or Mokihinui Water service by upgrading existing 25mm galvanized steel mains Supply.

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NEGATIVE EFFECTS LEVELS OF SERVICE There are no negative effects to upgrading water supplies. The overall corporate goals and legislative requirements have been translated into a number of more specific target performance standards. These are summarised below: COMMUNITY OUTCOMES & HOW WE CONTRIBUTE TO yy To ensure that all supplies have sufficient water at the source, and within the system, to meet the reasonable needs of the consumers. STRATEGIC GOALS yy To ensure that connections are provided with adequate water pressure under normal use. This activity supports the following community outcomes: yy To ensure that fire hydrants provide an adequate fire fighting supply. yy To ensure the quality of the water supplies shall meet the expectations of each community Well-being: and all legal requirements. yy Provision of a reticulated water supply to support a healthy community. yy To maintain the service to the consumer with a minimum of disruption and inconvenience to yy Provision of water for sanitary services. the public. yy By maintaining sufficient water for fire fighting purposes. yy To minimise the quantity of unaccounted for water. Environment: yy To ensure that supplies are managed in a cost-effective manner. yy By conserving water and encouraging others to do the same. yy To ensure that supplies are managed in an environmentally sensitive manner. yy The corresponding levels of service that have been established as a means of achieving the Learning: performance standards, as set out above. yy By providing water conservation education. Prosperity: FUNDING ALLOCATIONS yy By meeting commercial water needs and meeting community needs at affordable costs and equal access to water. Activity Funding Mechanism Targeted Rate Capital Spend CAPITAL EXPENDITURE AND CHANGES IN LEVEL OF SERVICE Water Supplies 100% Loan or Targeted Rates As detailed on page 68 for Westport and all rural water supply upgrades. Metered water for major users Subsidies from Special Funds

TARGETED RATES (ROUNDED, GST EXCLUSIVE) Water Supplies 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Westport 740 760 800 820 840 850 860 870 880 900 Reefton 550 590 630 650 670 690 700 720 740 760 Little Wanganui 220 230 230 240 240 250 250 250 260 270 Mokihinui 260 270 270 275 275 280 285 290 300 310 Ngakawau-Hector 310 310 310 320 320 320 320 330 330 330 Waimangaroa 370 550 550 560 580 580 600 610 630 640 Punakaiki Water 900 900 910 910 920 920 930 930 940 940 Inangahua Junction 500 500 510 510 520 520 530 530 540 540 South Granity 240 250 255 265 270 280 295 305 315 330

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MANDATORY PERFORMANCE MEASURES Water Services Key Service Criteria Target Level of Service Measurement Current Performance Performance Performance Target 2018/2019 - Target 2021/2022 - 2020/2021 2027/2028 Mandatory Performance Measure 1: (see table 1, page 73)

Provide an adequate Is the water safe to Performance measure The extent to which Council’s 2016/ 2017 Full compliance Full compliance quality of water drink? one (safety of drinking water supply complies with: (100%) (100%) water): a) Part 4 of the Drinking Water Bacteria Bacteria

Standards (bacteria compliance Bacteria Compliance Protozoa Compliance Protozoa Protozoa criteria). Westport Yes Yes b) Part 5 of the Drinking Water Carters Beach Yes Yes Standards (protozoa compliance Reefton Yes Yes criteria) Punakaiki No N/A Bacterial compliance achieved for Westport, Carters Beach, Reefton and Inangahua (4th quarter). Protozoal compliance achieved for Westport, Carters Beach and Reefton.

2015/ 2016 Bacteria Compliance Protozoa Compliance Westport Yes No Carters Beach Yes No Reefton Yes No Punakaiki No No

Mandatory Performance Measure 2: (see table 2, page 73) Provide a reliable Maintenance of Performance measure The percentage of real water 2016/2017: 58% in Westport only 20% 20% supply of water reticulation network. two (maintenance of loss from Council’s networked (2015/2016: 58% in Westport) reticulation network): reticulation system (including a description of the methodology used to calculate this)

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Water Services Key Service Criteria Target Level of Service Measurement Current Performance Performance Performance Target 2018/2019 - Target 2021/2022 - 2020/2021 2027/2028 Mandatory Performance Measure 3: Provide a reliable Fault Response Performance Measure Where Council attends to a call-out in response to a fault or unplanned interruption to its networked reticulation supply of water Times three (fault response system, the following median response times measured: times): a) Attendance for urgent call 2016/2017: there were no 2 hours 2 hours outs: from the time that Council urgent requests based on receives notification to the time Council’s service request system that service personnel reach the (2015/2016: no measure, site; and recording system was amended in June 2016). b) Resolution of urgent call 2016/2017: there were no 5 hours 5 hours outs: from the time that Council urgent requests based on receives notification to the Council’s service request system time that service personnel (2015/2016: no measure, confirm resolution of the fault or recording system was amended in interruption. June 2016). c) Attendance for non-urgent call 2016/2017: 38 call outs were 1 working day 1 working day outs: from the time that Council attended within 1 working receives notification to the time day of notification, the median that service personnel reach the attendance time was 24-hours. site; and (2015/2016: no measure, recording system was amended in June 2016). d) Resolution of non-urgent 2016/2017: 78 call outs were 5 working days 5 working days call outs: from the time that received in total, of these 55 Council receives notification to were resolved within 5 working the time that service personnel days; the median resolution confirm resolution of the fault or time was 2 working days. 23 call interruption. outs were not resolved within 5 working days – these were very minor leaks and contractors were given extra time to repair due to other commitments. This did not affect consumers (2015/2016: no measure, recording system was amended in June 2016).

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Water Services Key Service Criteria Target Level of Service Measurement Current Performance Performance Performance Target 2018/2019 - Target 2021/2022 - 2020/2021 2027/2028 Mandatory Performance Measure 4: Provide water Customer Performance measure The total number of complaints received by Council about any of the following: with the minimum satisfaction four (customer a) Drinking water clarity 2016/2017: 1 (2015/2016: nil). 5/ per 1,000 5/ per 1,000 environmental satisfaction): connections. connections. impact. b) Drinking water taste 2016/2017: 1 (2015/2016: nil). c) Drinking water odour 2016/2017: nil (2015/2016: nil). d) Drinking water pressure 2016/2017: nil (2015/2016: several complaints from Punakaiki during October/November 2015). e) Continuity of supply 2016/2017: nil (2015/2016: nil. f) Council’s response to any of 2016/2017: mains flushing was these issues. undertaken. Taste issues unable to be controlled by Council as these may be attributed to the reticulation network (2015/2016: resolved issue at Punakaiki with pipe along state highway). Mandatory Performance Measure 5: Demand Performance measure five The average consumption of 2016/2017: 408 – Westport water 700 litres 700 litres management (demand management): drinking water per day per supply (2015/2016: 1,081). resident within the Buller district. 2016/2017: 870 – Reefton water supply (2015/2016: 1,273). Other Key Performance Measures: Provide a reliable Can you rely on the To provide water into the Proportion of time that water is Location of failures to meet Water supplied for Water supplied for supply of water. water supply to be system virtually all of the supplied into the reticulation. targets in any year. at least 360 days per at least 360 days per available? time. year year Targets: Water supplied 99.8% of the time. yy Water supplied 99% of the time Is the use of water To permit gardens to be Number of days that water Location and number of failures to 100% compliance 100% compliance restricted? maintained in a healthy restrictions are in place. meet targets in any year. state all year. Targets: yy 100% compliance

72 Buller District Council | Draft Long Term Plan 2018-2028 | WATER SUPPLIES |

TABLE 1: DRINKING WATER STANDARD - NZ COMPLIANCE TABLE 2: DRINKING WATER STANDARD - ZONE COMPLIANCE Water Supply Population Bacterial Compliance Protozoal Compliance (%) Water Supply Population Bacterial Compliance (WINZ) Current Target Current Target (WINZ) Current Target Performance Performance Performance 2018/19 - 2020/21 2021/22 - 2027/28 2018/19 - 2020/21 2021/22 - 2027/28 2018/19 - 2020/21 2021/22 - 2027/28 Hector/Ngakawau 435 No No No No No No Hector/Ngakawau 435 No No No Inangahua Junction 32 No Yes Yes No Yes Yes Inangahua Junction 32 No Yes Yes Little Wanganui 120 No No No No No No Little Wanganui 120 No No No Mokihinui 50 No No No No No No Mokihinui 50 No No No Punakaiki 125 No Yes Yes No Yes Yes Punakaiki 125 No Yes Yes Reefton 1,044 Yes Yes Yes Yes Yes Yes Reefton 1,044 Yes Yes Yes Waimangaroa 200 No No Yes No No Yes Waimangaroa 200 No No Yes Westport 4,974 Yes Yes Yes Yes Yes Yes Westport 4,617 Yes Yes Yes Carters Beach 357 Yes Yes Yes

TABLE 3: WATER LEAKAGE Target Water Supply Connections Current Performance Method 2018/19 - 2020/21 2021/22 - 2027/28 Hector/Ngakawau 176 2016/2017: not measured (2015/2016: new measure). 20% 20% MNF Inangahua Junction 33 2016/2017: 32% (2015/2016: new measure). 20% 20% MNF Little Wanganui 78 2016/2017: not measured (2015/2016: new measure). 20% 20% MNF Mokihinui 50 2016/2017: not measured (2015/2016: new measure). 20% 20% MNF Punakaiki 93 2016/2017: 41% (2015/2016: new measure). 20% 20% MNF Reefton 663 2016/2017: 39% (2015/2016: new measure). 20% 20% MNF Waimangaroa 137 2016/2017: not measured (2015/2016: new measure). 20% 20% MNF Westport 2,694 2016/2017: 58% (2015/2016: new measure). 20% 20% MNF MNF = Minimum Night Flow

Buller District Council | Draft Long Term Plan 2018-2028 73 | WATER SUPPLIES |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 WATER SUPPLIES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 0 0 0 0 0 0 0 0 0 0 0 Targeted rates 2,427 2,632 2,741 2,879 2,952 3,024 3,066 3,105 3,149 3,196 3,267 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 204 204 209 214 219 224 230 236 242 248 255 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 0 0 0 0 0 0 0 0 0 0 0 Total Operating Funding A 2,631 2,836 2,950 3,093 3,170 3,248 3,296 3,340 3,391 3,444 3,522 Applications of Operating Funding Payments to suppliers and staff 1,204 1,192 1,043 1,066 1,092 1,118 1,145 1,175 1,205 1,237 1,271 Finance costs 285 386 382 368 354 339 324 307 289 270 256 Internal charges and overheads applied 393 434 432 438 459 482 497 502 524 526 548 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 1,882 2,012 1,856 1,872 1,905 1,939 1,966 1,984 2,018 2,033 2,075 Surplus/ (deficit) of Operating Funding A-B 749 824 1,094 1,220 1,265 1,309 1,329 1,357 1,373 1,411 1,447

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 403 401 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt 2,243 (39) (232) (245) (260) (275) (290) (307) (325) (290) (251) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 2,646 361 -232 -245 -260 -275 -290 -307 -325 -290 -251 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 2,386 859 216 221 227 232 238 244 250 256 262 - to replace existing assets 1,006 741 560 684 588 657 594 667 660 701 657 Increase/ (decrease) in reserves 173 (415) 85 69 192 146 207 139 139 164 277 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 3,395 1,185 862 975 1,006 1,034 1,039 1,050 1,048 1,121 1,196 Surplus/ (deficit) of Capital Funding C-D (749) (824) (1,094) (1,220) (1,265) (1,309) (1,329) (1,357) (1,373) (1,411) (1,447) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

74 Buller District Council | Draft Long Term Plan 2018-2028 | WASTEWATER / SEWERAGE | WASTEWATER/SEWERAGE

A new pump and cabinet is budgeted for at Little Wanganui in WHAT DO WE DO? year 2 of the Long Term Plan at a cost of $20,808. CHANGES IN LEVEL OF SERVICE Council provides these activities to support the health and Main upgrades resulting in increased levels of service: wellbeing of the community and the environment. SIGNIFICANT NEGATIVE EFFECTS yy Westport ($220,570 over 10 years) Council currently provides for the collection and transportation There is potential for the discharge of the effluent from these of the wastewater from residential and commercial properties sewer systems to result in significant negative effects to public SIGNIFICANT CAPITAL EXPENDITURE of the townships of Westport, Little Wanganui and Reefton health and the environment. However, effluent discharges are Mains renewals: through the underground piping infrastructure and treatment subject to a resource consent process and the effects of each facilities. The rest of the district is serviced by on-site disposal discharge are identified. Where risks exist, there are conditions yy Westport ($5.87m over 10 years) systems that property owners maintain. placed on that discharge to manage the potential effects. yy Reefton ($1.26m over 10 years) yy Little Wanganui ($174,000 over 10 years, including new The primary purpose of the sewer system is to reduce the pump and cabinet) ASSUMPTIONS negative effects from wastewater discharges that would It has been assumed that there will be no significant capacity otherwise arise from the individual communities. change required for infrastructure to meet demands from FUNDING ALLOCATIONS industry or population growth. COMMUNITY OUTCOMES & HOW WE Activity Funding Mechanism Resource consent to discharge primary treated and untreated Operating Capital sewage effluent to Buller River during storm overflow events CONTRIBUTE TO STRATEGIC GOALS will remain in effect. This was for 20 years from the date of issue This activity supports the following community outcomes: Westport Sewerage Targeted Special Funds Rate July 2003. Loans Well-being No new legislation for wastewater will be enacted and there Reefton Sewerage Targeted Special Funds will be no major infrastructure failures. Provision of a sanitary wastewater collection and treatment Rate service. Loans Little Wanganui Sewerage Targeted Special Funds COMMUNITY WASTEWATER AND Sustainable Environment Rate Loans SEWERAGE SYSTEMS Protection of the environment through the treatment of wastewater. Council continues a routine sewer mains replacement programme throughout Westport, Carters Beach, Little Wanganui and Reefton, as well as treatment plant upgrades as Learning required. Provision of water conservation programmes.

Sewer modelling and separation is planned for Westport Prosperity in year 1 of the Long Term Plan. This will assess the level of stormwater infiltration into the network and allow for planning By meeting commercial wastewater needs and meeting to reduce the amount of stormwater entering it, therefore community needs at an affordable cost. improving capacity across the network. Additional camera surveys and water blasting of earthenware mains throughout Reefton to undertake maintenance assessments and remove debris from pipes is planned in Reefton.

Buller District Council | Draft Long Term Plan 2018-2028 75 | WASTEWATER / SEWERAGE |

TARGETED RATES (ROUNDED) (GST EXCLUSIVE) Sewerage 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Westport 880 890 920 960 980 1,000 1,020 1,030 1,040 1,060 Reefton 580 590 600 620 630 640 660 680 700 720 Little Wanganui 630 640 640 650 650 660 670 680 690 700

LEVELS OF SERVICE The overall corporate goals and legislative requirements have been translated into a number of more specific target performance standards: yy To maintain the systems so that there are no significant blockages. yy To maintain the service to the consumer with a minimum of disruption and inconvenience to the public. yy To ensure that services are managed in a cost effective manner. yy To ensure that supplies are managed in an environmentally sensitive manner. MANDATORY PERFORMANCE MEASURES Sewer Services Key Service Criteria Target Level of Measurement Current Performance Performance Target Performance Target Service 2018/2019 - 2020/2021 2021/2022 - 2027/2028 Mandatory Performance Measure 1: Provide adequate How often does the Performance The number of dry weather 2016/2017: 0 5 4 capacity. sewer overflow? measure one (system sewage overflows from Council’s (2015/2016: 0). and adequacy): sewerage system expressed per 1,000 sewerage connections to Council’s system. Mandatory Performance Measure 2: Provide sewer Is the environment Performance Compliance with Council’s resource consents for discharge from its sewerage system measured by the number of: collection being harmed? measure two a) Abatement notices; 2016/2017: 0 <5 <5 and disposal (discharge with minimal compliance): (2015/2016: 0). environmental b) Infringement notices; 2016/2017: 0 0 0 impact. (2015/2016: 0). c) Enforcement orders; and 2016/2017: 0 0 0 (2015/2016: 0). d) Convictions received by 2016/2017: 0 0 0 Council in relation to those (2015/2016: 0). resource consents

76 Buller District Council | Draft Long Term Plan 2018-2028 | WASTEWATER / SEWERAGE |

Sewer Services Key Service Criteria Target Level of Measurement Current Performance Performance Target Performance Target Service 2018/2019 - 2020/2021 2021/2022 - 2027/2028 Mandatory Performance Measure 3: Provide sewer Fault Response Times Performance Where Council attends to sewage overflows resulting from a blockage or other fault in Council’s sewerage system, the collection Measure three (fault following median response times are measured: and disposal response times): a) Attendance time: from the 2016/2017: 6 overflows 2 hours 2 hours with minimal time that Council receives attended within timeframe. environmental notification to the time that Median attendance time was 1 impact. service personnel reach the hour (2015/2016: 3 overflows site; and attended within timeframe). b) Resolution time: from the 2016/2017: 6 overflows resolved 1 day 1 day time that Council receives within 1 day. Median resolution notification to the time that time was 1 day (2015/2016: 3 service personnel confirm overflows resolved within 1 day). resolution of the blockage or other fault. Mandatory Performance Measure 4: Provide sewer Customer satisfaction Performance The total number of complaints received by Council about any of the following: collection measure four a) Sewerage odour; 2016/2017: 1 5 5 and disposal (customer with minimal satisfaction): (2015/2016: 0). environmental b) Sewerage system faults; 2016/2017: 0 impact. (2015/2016: 7). c) Sewerage system blockages, 2016/2017: 1 and (2015/2016: 3). d) Council’s response to issues 2016/2017: 0.32 with its sewerage system (2015/2016: 2.2). (expressed per 1,000 properties connected to Council’s sewerage system).

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 WASTEWATER/SEWERAGE $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 0 0 0 0 0 0 0 0 0 0 0 Targeted rates 2,436 2,606 2,638 2,720 2,833 2,889 2,946 3,009 3,047 3,085 3,148 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 5 5 5 5 6 6 6 6 6 6 6 Total Operating Funding A 2,441 2,611 2,643 2,725 2,838 2,895 2,952 3,015 3,053 3,091 3,155 Applications of Operating Funding Payments to suppliers and staff 916 894 911 930 949 970 992 1,015 1,040 1,066 1,092 Finance costs 249 233 216 198 179 159 138 116 92 67 41 Internal charges and overheads applied 323 337 344 349 366 390 401 406 423 425 441 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 1,488 1,463 1,471 1,477 1,494 1,519 1,531 1,537 1,555 1,557 1,574 Surplus/ (deficit) of Operating Funding A-B 953 1,148 1,172 1,248 1,344 1,376 1,421 1,478 1,499 1,534 1,581

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (285) (301) (318) (336) (355) (375) (396) (418) (442) (467) (493) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C (285) (301) (318) (336) (355) (375) (396) (418) (442) (467) (493) Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 167 20 20 21 21 22 22 23 23 24 24 - to replace existing assets 448 871 880 873 1,166 986 950 1,036 998 981 1,038 Increase/ (decrease) in reserves 53 (44) (47) 19 (197) (7) 53 1 36 63 25 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 668 847 854 912 990 1,001 1,025 1,060 1,057 1,067 1,088 Surplus/ (deficit) of Capital Funding C-D (953) (1,148) (1,172) (1,248) (1,344) (1,376) (1,421) (1,478) (1,499) (1,534) (1,581) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

78 Buller District Council | Draft Long Term Plan 2018-2028 | STORMWATER | STORMWATER

WHAT DO WE DO? COMMUNITY OUTCOMES & HOW WE FUNDING ALLOCATIONS Stormwater management systems are a set of procedures and CONTRIBUTE TO STRATEGIC GOALS physical assets designed to manage the need to dispose of Stormwater Services Funding surface water as a result of rainfall. The most significant outcome supported by the provision of Stormwater is funded from General Rates as this activity is stormwater systems is a healthy community. Uncontrolled not seen as benefiting a particular individual or group of Council manages open drain stormwater systems in Hector, stormwater runoff can be destructive and represent an individuals but the community as a whole. Ngakawau, Seddonville, Granity, Waimangaroa, Westport, immediate risk to life. Carters Beach and Reefton. In addition there is a piped stormwater system in Westport. Stormwater systems promote prosperous and sustainable LEVELS OF SERVICE communities, through the minimisation of stormwater damage Sections of the Westport piped sewerage system and all of the and the protection of the environment. The overall corporate goals and legislative requirements Reefton piped sewer system also convey stormwater. have been translated into a number of more specific target performance standards: In Punakaiki, the only public stormwater drain is maintained Well-being by NZTA as part of their roading network. In other townships, The service is deemed to provide a public benefit, through the yy To ensure that all stormwater systems have sufficient such as Mokihinui or Little Wanganui, there are no formal protection of property. capacity to meet the reasonable needs of the consumers. stormwater systems at all stormwater simply soaks to ground yy To ensure that stormwater within urbanised areas does not The provision of stormwater systems reduces the risk of death naturally. contribute to cross boundary flooding for events up to 10% or injury resulting from flooding on private property. AEP* (1 in 10 year event). yy To ensure that stormwater within urbanised areas does WHY ARE WE INVOLVED IN THIS SIGNIFICANT ISSUES AND THEIR not enter dwellings for events up to 2% AEP* (1 in 50 year ACTIVITY? event). IMPACT yy To ensure that secondary flow paths are identified for events Council provides stormwater systems to manage surface $150,000 has been included in year 1 of the Long Term Plan exceeding the capacity of the primary systems. water runoff in a way that achieves a balance between the to complete stormwater modelling to assist with the mains level of protection from localised flooding and the cost to the yy To ensure that stormwater systems are maintained at or replacement programme for the remainder of the Long Term community. beyond the minimum capacity required. Plan. yy To ensure that stormwater systems are managed in a cost- After the severe storm events of cyclone Fehi and Gita in 2018 effective manner. ASSUMPTIONS Council recognises a key issue of climate change in this Long yy To ensure that stormwater discharges are managed in an It has been assumed that there will not be significant Term Plan. A key project identified for year 1 of the Long Term environmentally sensitive manner. population growth in urban areas requiring stormwater Plan is analysing and understanding these risks and impacts It can be costly to undertake the necessary investigations to reticulation. and having conversations with our community about what the quantify what the capacity of an existing system actually is, No new major legislation for stormwater will be enacted. future may need to look like in terms of district planning. The and there can be significant costs associated with upgrading outcome of this project can assist the future planning of capital that capacity. Therefore, while it is appropriate to apply these work required for the stormwater network performance standards to all new stormwater systems, a more NEGATIVE EFFECTS pragmatic approach is taken towards the management of Storm and rain events of a severity which exceed design SIGNIFICANT CAPITAL EXPENDITURE existing stormwater systems. capability may result in short term negative effects such as localised flooding. Mains renewals ($1.9m over 10 years). There is a potential danger posed by open drains.

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Specifically, all existing stormwater systems are simply maintained to their original design capacity. Additionally, when all of the following conditions exist, the actual capacity of existing stormwater systems need not be calculated: yy The system has operated for over 30 years without significant flooding. yy The system has operated for over 30 years without significant damage. yy The system has operated for over 30 years to the satisfaction of the community. yy Site specific investigations are undertaken when the existing capacity is not considered acceptable to the individual community. Any upgrade options are considered based on risk and benefit/ cost considerations.

MANDATORY PERFORMANCE MEASURES Stormwater Services Key Service Criteria Target Level of Measurement Current Performance Performance Target Performance Target Service 2018/2019 - 2020/2021 2021/2022 - 2027/2028 Mandatory Performance Measure 1: Provide adequate Is there adequate Performance a) The number of flooding events 2016/2017: there were 3 No target No target stormwater capacity. stormwater measure one that occur in Council’s systems. stormwater flooding events drainage? (system and recorded from service requests adequacy): (stormwater ponding within roadways is a regular occurrence because they are secondary flow paths) – target met. (2015/2016: target met). b) For each flooding event, the 2016/2017: no houses inundated 5 for each event 5 for each event number of habitable floors – target met. affected (expressed per 1.000 (2015/2016: nil – target met). properties connected to Council’s stormwater systems) The system can All new systems are designed Number of deficient designs Nil Nil contain and dispose with a minimum 10% AEP found in any year. of stormwater, capacity, without ponding, and without ponding or a minimum 2% AEP capacity, overflow. without inundation of dwellings.

80 Buller District Council | Draft Long Term Plan 2018-2028 | STORMWATER |

Stormwater Services Key Service Criteria Target Level of Measurement Current Performance Performance Target Performance Target Service 2018/2019 - 2020/2021 2021/2022 - 2027/2028 Mandatory Performance Measure 2: Dispose of stormwater Is the environment Performance Compliance with Council’s with the minimum being harmed? measure two resource consents for discharge environmental (discharge from its stormwater system impact. compliance): measured by the number of: a) Abatement notices; 2016/2017: nil. Nil Nil (2015/2016: nil). b) Infringement notices; 2016/2017: nil. Nil Nil (2015/2016: nil). c) Enforcement orders; and 2016/2017: nil. Nil Nil (2015/2016: nil). d) Convictions received by 2016/2017: nil (2015/2016: nil). Nil Nil Council in relation to those resource consents Mandatory Performance Measure 3: Dispose of stormwater Fault Response Performance The median response time 2016/2017: no service requests 1 hour 1 hour with the minimum Times Measure three (fault to attend a flooding event, to attend flooding events – target environmental response times): measured from the time that met. impact. Council receives notification to (2015/2016: nil – target met). the time that service personnel reach the site. Mandatory Performance Measure 4: Dispose of stormwater Customer Performance The total number of complaints 2016/2017: 1.2 complaints per 5 5 with the minimum satisfaction measure four received by Council about the 1,000 properties were received, environmental (customer performance of the stormwater all regarding surface flooding – impact. satisfaction): system, expressed per 1,000 target met. properties connected to Council’s (2015/2016: 1.6 complaints per stormwater system. 1,000 properties were received – target met).

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 STORMWATER $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 498 499 523 530 544 559 572 581 597 594 598 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 5 5 5 5 5 5 5 5 6 6 6 Total Operating Funding A 503 503 527 535 549 564 578 587 603 600 604 Applications of Operating Funding Payments to suppliers and staff 152 149 152 155 159 162 166 170 174 178 183 Finance costs 25 23 28 26 23 21 18 16 13 10 8 Internal charges and overheads applied 97 100 104 104 109 115 120 119 126 125 131 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 274 273 284 285 292 299 304 305 313 312 321 Surplus/ (deficit) of Operating Funding A-B 229 231 243 250 258 265 273 282 290 287 283

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (24) 124 (32) (34) (37) (39) (42) (44) (47) (38) (28) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C (24) 124 (32) (34) (37) (39) (42) (44) (47) (38) (28) Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 150 0 0 0 0 0 0 0 0 0 - to replace existing assets 205 205 211 216 221 226 232 237 243 249 255 Increase/ (decrease) in reserves 0 0 0 0 0 0 0 0 0 0 0 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 205 355 211 216 221 226 232 237 243 249 255 Surplus/ (deficit) of Capital Funding C-D (229) (231) (243) (250) (258) (265) (273) (282) (290) (287) (283) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

82 Buller District Council | Draft Long Term Plan 2018-2028 | SOLID WASTE | SOLID WASTE

WHAT DO WE DO? WHY ARE WE INVOLVED IN THIS COMMUNITY OUTCOMES & HOW WE The Solid Waste activity provides for the collection, transfer and ACTIVITY? CONTRIBUTE TO STRATEGIC GOALS final disposal of waste materials generated by households and businesses within the district. Facilitating the provision of a kerbside collection for household This activity supports the following community outcomes: refuse and recycling, plus providing waste disposal and Council provides solid waste collection and recycling services materials diversion services, helps to maintain the quality of Well-being through an environmentally sustainable contractor. life in the District and facilitates waste minimisation through yy By facilitating the collection and disposal of refuse. Council entered into a 10-year contract with Smart re-use, recycling and recovery by protecting the environment. Environmental Ltd to provide this service from 1 February Provision of the service also minimises illegal dumping of Environment 2014. This include the collection and disposal of residual refuse. yy By facilitating collecting and disposing of refuse in a safe, refuse and recycling, the management of the transfer stations efficient and sustainable manner that maintains district and the transportation of residual waste to a landfill. The bag ASSUMPTIONS natural and aesthetic values. and wheelie bin and crate system are a more environmentally yy The solid waste disposal minimises risk of waste being Smart Environmental Ltd continue to provide the service that sustainable waste system for Zone 1 residents who benefit inappropriately or dangerously disposed of. they tendered for in accordance with the contract provisions. from many recycling materials being accepted as part of the yy By providing safe collection and disposal of refuse by kerbside collection service. Legislation will not change significantly over the term of the encouraging waste minimisation. plan. Council also operates two active landfills at Karamea and Learning Maruia. Consumer patterns of consumption and product packaging yy Provide programmes to schools and the community on will remain at the current levels, therefore similar amounts of Council provides the aftercare of Council’s closed landfill sites waste care and reduction. waste will be produced by the District. (Birchfield, Westport, Charleston, Inangahua, Reefton, Springs Junction and Ikamatua) and monitors groundwater quality at Prosperity these sites as required under resource consent conditions. NEGATIVE EFFECTS yy By meeting commercial needs for dealing with waste. Council also has a role in facilitating waste minimisation Refuse is trucked to Nelson from Westport and Reefton and behaviours within communities. This is put into effect by this adds to both road usage and vehicle pollution. All loads CHANGES IN LEVEL OF SERVICE providing resources for education programmes into schools are fully secured and covered to minimise the opportunity for about sustainability and waste minimisation. Support is also spillage. Road usage will be independently managed by the PROVIDED provided to businesses to develop more sustainable practices. contractor. There are no changes in the level of service provided. Contaminants from closed landfills leaching into surrounding land and/or water posing a threat to the environment and SIGNIFICANT ISSUES AND THEIR general well-being of the public. This risk is minimised by compliance with resource consents and the monitoring of IMPACT waterways in the vicinity of landfills. No significant issues.

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SIGNIFICANT CAPITAL EXPENDITURE yy Sealing at the Reefton Transfer Station has been budgeted for year 2 of the Long Term Plan ($22,440). yy $110,000 has been budgeted for litter bins across 10 years of the Long Term including $27,500 for Reefton in year 2. FUNDING ALLOCATIONS Funding allocations are as per the Revenue and Finance Policy.

Activity Funding Mechanism Operating Capital Provision of waste management and 100% Targeted Rates Depreciation Reserves, waste minimisation in Zone 1, 2 and 3 Loans, Investments Residual costs associated with landfill 100% General Rates Depreciation Reserves, monitoring Loans, Investments

CHANGES IN FEES AND CHARGES Fees & charges for Zone 1 are set by the contractor.

TARGETED RATES (ROUNDED) (GST EXCLUSIVE) Solid Waste 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Zone 1 115 120 120 125 132 135 135 137 139 145 Maruia 85 90 90 95 95 100 105 110 110 115 Karamea 85 85 87 89 90 95 97 99 104 107

84 Buller District Council | Draft Long Term Plan 2018-2028 | SOLID WASTE |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 SOLID WASTE $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 337 270 271 266 296 321 269 266 267 262 262 Targeted rates 654 627 653 654 680 716 734 736 747 760 792 Subsidies and grants for operating purposes 37 42 43 44 45 46 47 48 49 50 51 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 89 95 97 99 101 103 106 108 111 113 116 Total Operating Funding A 1,117 1,035 1,063 1,062 1,122 1,186 1,155 1,158 1,174 1,185 1,221 Applications of Operating Funding Payments to suppliers and staff 811 782 798 813 831 898 868 887 910 932 956 Finance costs 79 61 60 53 81 52 49 45 41 36 31 Internal charges and overheads applied 143 119 120 123 128 139 138 140 145 145 150 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 1,033 962 977 989 1,040 1,089 1,055 1,072 1,096 1,113 1,137 Surplus/ (deficit) of Operating Funding A-B 84 73 86 73 82 97 100 85 78 72 84

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (65) (66) (70) (74) (78) (83) (88) (93) (99) (105) (111) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C (65) (66) (70) (74) (78) (83) (88) (93) (99) (105) (111) Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 138 35 30 8 8 8 8 8 9 9 9 Increase/ (decrease) in reserves (119) (28) (14) (8) (4) 6 3 (16) (29) (42) (36) Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 19 7 16 (1) 4 14 12 (8) (21) (33) (27) Surplus/ (deficit) of Capital Funding C-D (84) (73) (86) (73) (82) (97) (100) (85) (78) (72) (84) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

Buller District Council | Draft Long Term Plan 2018-2028 85 | PROFESSIONAL SERVICES BUSINESS UNIT | PROFESSIONAL SERVICES BUSINESS UNIT

WHAT DO WE DO? COMMUNITY OUTCOMES & HOW WE SIGNIFICANT CAPITAL EXPENDITURE The Professional Services Business Unit provides engineering CONTRIBUTE TO STRATEGIC GOALS Vehicle replacements in line with Councils Vehicle Replacement services to support the maintenance and development and Policy (every 5 years). construction of Council infrastructure. This activity supports the following community outcomes: This includes the preparation of contracts for roading, water, Well-being FUNDING ALLOCATIONS wastewater, solid waste and property, amenities and reserves. yy By monitoring the conditions of Council assets and issuing Funding allocations are as per the Revenue and Finance Policy The PSBU monitor the performance of contractors and issue requests for maintenance in time. instructions for work found necessary as a result of requests for Activity Funding Mechanism service and comments from ratepayers. Sustainable Environment Operating Fees Capital Spend yy By monitoring landfills and wastewater treatment plants. WHY ARE WE INVOLVED IN THIS Professional Overheads Nil Loans Prosperity Services reallocated to Depreciation other activities and ACTIVITY? yy By requesting necessary maintenance in time. Reserves An in-house professional services business unit allows Council departments. to access engineering services on a cost effective basis. In- CHANGES IN THE LEVEL OF SERVICE house expertise assists the efficient management of Council roading and other infrastructure assets including water, PROVIDED wastewater and solid waste. No anticipated changes in level of service.

ASSUMPTIONS SIGNIFICANT ISSUES AND THEIR Staffing and engineering requirements remain at present level. IMPACT No significant issues NEGATIVE EFFECTS There are no negative effects

KEY PERFORMANCE INDICATORS What we plan to do and our levels of service 1. Provide eingineering advice to Council and administer contracts How we do it Provision of Asset Management Plans How we measure Provide monthly reports on annual work Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance programmes, monitor contract works. 2016/2017: monthly reports were Continue to provide programme reports Continue to provide programme reports Prepare monthly contract progress. presented to the Manager Operations on to the Chief Executive Officer and to the Chief Executive Officer and Work Programme progress – target met. explain all delays and overruns. explain all delays and overruns. Prepare annual work programmes. (2015/2016: target met).

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 PROFESSIONAL SERVICES BUSINES UNIT $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 0 0 0 0 0 0 0 0 0 0 0 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 807 915 932 949 967 987 1,007 1,028 1,051 1,074 1,099 Local authorities fuel tax, fines, infringements fees and other receipts 0 0 0 0 0 0 0 0 0 0 0 Total Operating Funding A 807 915 932 949 967 987 1,007 1,028 1,051 1,074 1,099 Applications of Operating Funding Payments to suppliers and staff 626 737 749 762 776 790 806 821 838 855 873 Finance costs 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads applied 142 158 163 158 163 189 184 187 198 192 196 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 768 896 912 920 939 980 990 1,009 1,036 1,047 1,069 Surplus/ (deficit) of Operating Funding A-B 39 20 19 29 28 7 17 20 15 27 30

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (4) 0 0 0 0 0 0 0 0 0 0 Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C (4) 0 0 0 0 0 0 0 0 0 0 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 5 0 36 5 32 38 0 45 0 36 0 Increase/ (decrease) in reserves 30 20 (16) 23 -4 -31 17 -26 15 -9 30 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 35 20 19 29 28 7 17 20 15 27 30 Surplus/ (deficit) of Capital Funding C-D (39) (20) (19) (29) (28) (7) (17) (20) (15) (27) (30) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

Buller District Council | Draft Long Term Plan 2018-2028 87 | COMMUNITY SERVICES | COMMUNITY SERVICES

Reefton Cinema WHAT DO WE DO? Reefton Cinema is part of the Reefton Community Centre WHY ARE WE INVOLVED IN THESE Community Grants and Funding which has had significant capital work upgrading and ACTIVITIES? improving the building during 2017. Council currently provides contestable grant funding directly A community is enhanced through the provision of services that deliver to the cultural and recreational needs of residents. to community organisations, as well as managing the Communications distribution of various government funding for arts, sporting These services are vital to the quality of life of residents and and youth initiatives. Council continued to produce a bi-monthly newsletter that is delivered to all households in the Buller. The Council website provide the infrastructure that enables the building of social, cultural and sporting associations within the community. The Sports, recreation & cultural facilities & services is regularly updated to provide information for our customers and Facebook is also used for up to date communications. community also has a vital role to play in contributing to the Council transferred ownership of the (then) Solid Energy district’s success by being informed about and involved in Centre to Buller Recreation Ltd on 01 July 2009 for improved District Economic Development decisions and projects. commercial focus. Council continues to contribute towards the provision of recreation and aquatic services in Buller at Since 2014/2015 Council has worked towards a Buller facilities operated in both Westport and Reefton. The Westport Economic plan that aligns with the 2017 West Coast Regional ASSUMPTIONS sport and recreation facility is now named the Pulse Energy Economic Development Action Plan. This plan was written in No changes to funding from central government and national Recreation Centre after obtaining a ten year sponsorship response to the West Coast Regional Growth Study which was organisations. agreement during 2017. commissioned due to challenging economic conditions on the West Coast. NEGATIVE EFFECTS Libraries The study identified that the West Coast has several assets that will support strong, long term employment and income Expectations from community groups of ongoing financial and Access to information is in a variety of formats including resource support. books, media and electronic databases. Buller District libraries growth into the future. These assets included spectacular promote life-long learning and support literacy. Information natural assets and environment, abundant resources and services are available during all opening hours with qualified resourceful people. COMMUNITY OUTCOMES & HOW WE staff available to help users to find the information they seek. One of the key areas of the Long Term Plan strategy is Council CONTRIBUTE TO STRATEGIC GOALS Westport library operates 6 days a week and Reefton 5 days facilitating the diversification of our economy and working a week. Free internet access is provided through Aotearoa toward making Buller Fit for the Future. This will make the This activity supports the following community outcomes: People’s Network while downloadable audio books and eBooks district more resilient to the decline in extractive industries and are available via a library consortium. Well-being help to stabilise Buller’s population. Tourism plays a key role in yy By providing facilities that allow people to play sport and our future as do new business enterprises based around new NBS Theatre achieve their fitness and recreational goals. Providing technology, the environment and value added products. grants, facilities and spaces that assist in developing the NBS Theatre complex provides a 350 seater auditorium and Council currently funds one part time economic development community cohesion that supports mental and social well- double cinema community facility (main cinema provides 55 officer role. being. seats; the smaller cinema provides seating for 20). The theatre is open 7 days a week with multiple movie screenings and District Promotion and Tourism Support Learning the auditorium provides a venue for live performances of all yy Assisting in the development of lifelong learning Council currently provides funding for i-Sites and information genres. The first 7 Day Makeover was completed outside the and literacy through the Library network. Providing centres throughout the district, and funds museums at Blacks NBS Theatre which has helped to promote the theatre and performance space for use in artistic and cultural Point and Coaltown in Westport. encourage good use of the public space outside the theatre. performance. Working with educational institutions on collaborative projects.

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Prosperity In the Long Term Plan, total year 1 funding for direct tourism yy Providing high quality community facilities to attract people support expenditure funded from the general rate is estimated FUNDING ALLOCATIONS to live and work in the Buller. Provide opportunities and at $230,000. This includes $100,000 toward Tourism West Activity Funding Mechanism funding that assist with tourism development and district Coast which is currently being negotiated to be paid by promotion. Development West Coast instead of the four Councils from General Fees Capital Spend 2018/2019 onward. Rate Who we are Museum Support Tourism and 100% Reserves yy Provision of community grants to support community Promotion: organisations. Council is committed to assist with the preservation of the (for Tourism & Promotion) yy Provision of high quality community spaces and facilities. district’s treasures and heritage. Museums play an important yy Economic part in the tourism experience while also enhancing the local Development Sustainable Environment culture. Council provides financial assistance to independent yy Tourism yy By providing an environment that reflects the lifestyle that museums located in our communities in the district. yy Museum is required and expected by residents, visitors and Central The Council will be funding $134,000 from the general rate in Funding Government. 2018/2019. Libraries 90% 10% yy Loans General Economic Development Support yy Special Funds SIGNIFICANT ISSUES AND THEIR IMPACT yy Grants Council is committed to economic development and Change in Council Grants Funding diversification and recognises that this can be best achieved by Recreation Facilities 100% Nil * yy Loans yy Council is proposing to fund Karamea Historical Society a local effort combined with a ‘whole of Coast’ effort combining yy Special Funds (Karamea Museum) and the Granity Museum $2,000 each in the efforts of all four West Coast Councils and Development yy Grants year 1 of the Long Term Plan only. West Coast (DWC). yy Reserves yy Council is proposing to fund Coaltown Museum $120,000 Theatre 55-70% 30-45% yy Loans for 2018-2019 through to 2020/2021, and increase funding SIGNIFICANT CAPITAL EXPENDITURE yy Special Funds to around $190,000 for the remainder of the Long Term yy Grants Plan. This proposed additional funding is contingent NBS Theatre Capital Expenditure Community 100% Nil Nil upon Coaltown being successful with their bid for external yy Re-roofing and theatre assets $380,000 over 10 years. funding toward a new exhibit showcasing early local Maori Development and life in Kawatiri (Buller). Buller Recreation Limited Support yy Pool Funding: Council has provided funding of $7,000 for yy Council agreed to fund capital expenditure for Buller * Fees charged at facilities accrue to Buller Recreation Ltd. rural swimming pools at Ngakawau-Hector and Karamea in Recreation Limited in exchange for shares from Buller year 1 of the Long Term Plan only. Holdings Limited ($4.5m over the 10 years of the Long Term Plan). Economic Development including Tourism Tourism Support Council recognises the potential of tourism throughout the whole district and accepts that a vibrant tourism industry creates economic benefits to all sectors of our community. Council also recognises that the district tourism goals are best fulfilled when the efforts of our Council are combined with those of other West Coast Councils, in ‘partnership’ with the efforts of the local tourism industry.

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KEY PERFORMANCE INDICATORS What we plan to do and our levels of service 1. To provide services and facilities that meet information, learning, recreatonal and cultural needs How we do it yy Provision of sport and recreation facilities yy Provision of library facilities yy Provision of theatre and cinema facilities How we measure Provide sport and recreation facilities Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance through the Pulse Energy Recreation 2016/17: Statements of Intent were Continue to submit Statements of Intent Continue to submit Statements of Intent Centre and the Reefton swimming pool. submitted and approved by Council - annually for Council approval. annually for Council approval. target met. (2015/16: targets met). Provide library facilities through the Sue 2016/17: 2,636 active members, a Continue to achieve active library Continue to achieve active library Thompson-Casey Memorial Library in decrease of 5.2%. members by maintaining or increasing members by maintaining or increasing Westport. by 0-4% per annum, by 0-4% per annum, (2015/16: 2,781 members. No percentage increase or decrease could be calculated due to inaccuracies in the system in 2014/15). 2016/17: member satisfaction survey - Continue to achieve at least 80% Continue to achieve at least 80% new measure. respondents are ‘satisfied’ or ‘very respondents are ‘satisfied’ or ‘very satisfied’ with the library services. satisfied’ with the library services. (2015/16: new measure.) Provide theatre and cinema facilities 2016/17: 28 screenings per week, on Continue to provide performing arts Continue to provide performing arts through the NBS Theatre in Westport. average - target met. events, exhibitions and shows and at events, exhibitions and shows and at least 26 cinema screenings per week to least 26 cinema screenings per week to (2015/16: 28 screenings per week, on be maintained. be maintained. average - target met). 2016/17: 32 days per year - target met. Continue to hire out the auditorium for Continue to hire out the auditorium for shows and performances for more than shows and performances for more than (2015/16: 33 days per year - target met). 30 days per year. 30 days per year. 2. To keep the community informed How we do it yy Provision of information to the community How we measure Continue to engage with the community Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance and keep them informed through the 2016/17: distribution of electronic Continue to engage with the community Continue to engage with the community distribution of communications as newsletters to subscribers, printed through the distribution of newsletters, through the distribution of newsletters, required. newsletters are distributed to every emails and media releases as required. emails and media releases as required. Buller house two-monthly and media releases are distributed as required - target met. (2015/16: target met).

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 COMMUNITY SERVICES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 3,594 3,772 3,810 3,861 3,866 3,919 3,907 3,988 4,059 4,075 4,125 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 21 21 21 21 21 21 21 21 21 21 21 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 551 346 353 360 367 375 384 393 402 412 423 Total Operating Funding A 4,166 4,139 4,184 4,242 4,254 4,316 4,312 4,402 4,483 4,509 4,569 Applications of Operating Funding Payments to suppliers and staff 1,985 1,915 1,955 2,030 2,033 2,015 2,042 2,103 2,098 2,127 2,160 Finance costs 838 842 835 828 821 814 807 845 908 902 935 Internal charges and overheads applied 521 502 521 534 487 581 585 582 599 591 601 Other operating funding applications 569 567 563 564 634 635 635 636 637 638 638 Total Applications of Operating Funding B 3,911 3,825 3,874 3,956 3,976 4,045 4,070 4,165 4,241 4,258 4,334 Surplus/ (deficit) of Operating Funding A-B 255 314 309 286 278 270 243 237 242 251 235

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (40) (125) (127) (128) (135) (143) (97) (102) (107) (112) (95) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 435 435 435 435 235 35 35 35 35 35 35 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 395 310 308 306 99 (108) (62) (67) (72) (78) (60) Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 60 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 162 112 104 226 108 111 113 116 118 121 124 Increase/ (decrease) in reserves 428 511 513 367 269 52 67 54 51 51 51 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 650 623 617 593 378 162 180 170 169 173 175 Surplus/ (deficit) of Capital Funding C-D (255) (314) (309) (286) (278) (270) (243) (237) (242) (251) (235) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

Buller District Council | Draft Long Term Plan 2018-2028 91 | GOVERNANCE, REPRESENTATION | GOVERNANCE, REPRESENTATION

WHAT DO WE DO? WHY ARE WE INVOLVED IN THIS SIGNIFICANT ISSUES AND THEIR Council is an elected body that provides a governance ACTIVITY? IMPACT structure for effective leadership, advocacy and accountable stewardship of the Council’s assets and resources. The Local Government Act 2002 requires Council and elected Council has a major role as a facilitator. It should provide members to lead and represent their community. This reliable, affordable services and infrastructure that meet Council is made up of 11 elected members including 10 Act requires Council to meet current and future needs of the community’s needs, help develop attractive towns and Councillors and one Mayor who are elected to serve a three- community in terms of good quality infrastructure and services a district that people will want to visit and reside in. This is year term of office which coincides with the local authority as well as provide quality regulatory functions, all in a cost important if the district is to experience economic growth and elections. Two Councillors represent Inangahua Ward, two effective way. As well as this, Council is well placed to provide a transition to a diversified, resilient and sustainable economy represent Seddon Ward and six represent Westport Ward. advocacy and leadership on other local matters that are which is a key aspect of Councils strategy. The Mayor chairs Council. The Inangahua Community Board outside those core functions. comprises of four elected members plus two Inangahua Ward It is critical that Council continues to advocate strongly to Councillors. Governance are supported by a Chief Executive Council and Community Boards provide: Central government on important issues. Key issues include: and staff. yy Advocacy for community issues affordability of local infrastructure, transport links, better local provision of core government services, high speed Broadband yy Monitoring of performance Council provides systems for democratic local decision making access and mobile black spots, Buller Hospital /IFHC; and big for the overall benefit of the community, for both our current yy Strategy setting to decide the level of services and activities projects that will have a transformational effect on Buller’s and future generations. Council decision making and actions to be provided to the district’s communities economy such as Waste to Energy, Kawatiri Cycle Trail, and are concerned with meeting the current and future needs yy A way for our community to have it’s views heard future proposed development. Protecting communities from of communities for good quality infrastructure, local public yy A way to promote social, economic, environmental and some of the effects of climate change are important given services and the performance of regulatory functions in a cost cultural wellbeing for the Buller District some of the recent weather events, therefore working closely effective way for both business and households. with the West Coast Regional Council is high on Councils list of Buller District Mayor and Councillors provide governance to set ASSUMPTIONS AND NEGATIVE priorities for this long term plan. direction, monitor and review Council performance, represent EFFECTS It is also important that Council considers affordability issues the Community as well as inform the Community of decisions in our communities. Rates affordability is important. Although made. We have assumed there will be no significant legislation the recent rates review consultation did not result in adopting changes that may affect this activity. There are no negative a new rates proposal Council is committed to improving the effects. current rates system to make it fairer for all. In addition Council intends to work closely with it’s holding company to look at opportunities to increase income from this area which would help to ease councils reliance on rates income.

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RATES OVERHAUL FUNDING ALLOCATIONS The 2012/2022 Long Term Plan noted that a Rating Review was Submissions closed on 18 December 2018 and submitters Activity Funding Mechanism long overdue. The existing system had been heavily modified were heard on 24 and 25 January 2018. Council deliberated on over time and evolved into a complex structure with more than the proposed rating system on 31 January 2018 and decided General Fees Capital 40 different categories of ratepayer all being rated on a unique not to adopt the proposal that had been posted to every Rate Spend basis. This gave rise to questions about equity and fairness. ratepayer. It was agreed that land value rating would remain Democracy 100% Recoveries from Nil the valuation base for striking rates in Buller District and the The long promised review was instigated by the newly elected triennial elections complicated rating system would be simplified by a review of Council in 2013. Considerable time was spent analysing the the differentials. issues and considering the possibilities for change. Preliminary consultation was undertaken during 2014, four information The timeline for the land value rates differentials review packs were sent to all ratepayers and public meetings were is expected to occur over the next three years. There may held during December 2014. The submission period closed on be a requirement for further special consultation with the 14 January 2015 and Councillors heard submissions on 29 and community. This is dependent upon the significance of any 30 January 2015. proposed changes to affected ratepayers. The outcome of the first round of submissions and community While any new rating system may alter the way rates are consultation was Council decided the draft rating policy and assessed and collected, this has no effect on the amount rates methodology had a number of areas which Councillors would to be collected and therefore no impact on any figures in this like to review. As a result Council extended the Rates Overhaul Long Term Plan, apart for the individual rating examples. All Project, and continued to work on this significant task. rating examples in this Long Term Plan are calculated on the existing rating system. A second phase of community consultation began on 15 November 2017. The second phase of consultation differed to the first proposal as it proposed to review only general rates.

KEY PERFORMANCE INDICATORS What we plan to do and our levels of service 1. To co-ordinate annual budgeting and financial planning processes How we do it yy Provide annual budgeting and financial planning processes How we measure Ensure annual budgeting and financial Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance planning processes are adhered to 2016/2017: Council met required Continue to meet statutory deadlines Continue to meet statutory deadlines in preparation of Long Term Plans, statutory deadlines for adoption of for adoption of Council’s Long Term Plan for adoption of Council’s Long Term Plan Annual Plans and Annual Reports within required reports – target met. and Annual Plan. and Annual Plan. statutory timeframes with an unqualified audit opinion being gained. (2015/2016: target met.)

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What we plan to do and our levels of service 2. To maintain customer satisfaction How we do it yy Provide a satisfactory level of customer service How we measure Ensure at least 85% of residents are Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance satisfied with the information they 2016/17: no customer satisfaction Continue to ensure at least 85% Continue to ensure at least 85% receive from Council survey was carried out. Council plan for of residents are satisfied with the of residents are satisfied with the a survey to be conducted in 2017/18. information Council distributes. information Council distributes. (2015/16: no survey was carried out.) 3. To maintain transparency, accountability and accessibility to the public How we do it yy Provide Council remain accountable through transparency and accessibility How we measure Ensure each Council meeting allows Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance the opportunity for public participation 2016/17: public forums were available at Continue to provide a full opportunity Continue to provide a full opportunity through speaking rights and public Council meetings - target met. for public participation in Council for public participation in Council forum, providing accountability, meetings through availability of meetings through availability of (2015/16: target met.) transparency and public accessibility to speaking rights and the public forum. speaking rights and the public forum. information provided. Ensure at least 90% of Council business 2016/17: 94% of Council business was Continue to conduct at least 90% of Continue to conduct at least 90% of is conducted in open forum. conducted in open forum - target met. Council business in open forum. Council business in open forum. (2015/16: 87%.) Ensure at least 90% of residents are 2016/17: not measured, no survey was Continue to ensure at least 90% of Continue to ensure at least 90% of satisfied that Council consults with them carried out - planned for early 2018. residents are satisfied that Council residents are satisfied that Council on important issues. consults with them on important issues. consults with them on important issues. (2015/16: new measure - not carried out.) 4. To co-operate with other agencies How we do it yy Participate in shared services How we measure Ensure full participation in the Mayors, 2016/17: 100% of meetings attended - Continue to attend 100% of West Coast Continue to attend 100% of West Coast performance Chairs and CEO meetings with the other target met. Mayors, Chairs and CEO meetings. Mayors, Chairs and CEO meetings. West Coast Council’s. 2015/16: 100% - target met.)

94 Buller District Council | Draft Long Term Plan 2018-2028 | GOVERNANCE, REPRESENTATION |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 GOVERNANCE AND REPRESENTATION $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 1,238 1,210 1,284 1,346 1,468 1,397 1,503 1,407 1,460 1,577 1,479 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 0 0 41 0 0 43 0 0 47 0 0 Total Operating Funding A 1,238 1,210 1,324 1,346 1,468 1,440 1,503 1,407 1,506 1,577 1,479 Applications of Operating Funding Payments to suppliers and staff 534 465 534 585 493 564 620 523 600 661 557 Finance costs 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads applied 704 746 791 761 975 876 883 884 906 916 922 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 1,238 1,210 1,324 1,346 1,468 1,440 1,503 1,407 1,506 1,577 1,479 Surplus/ (deficit) of Operating Funding A-B 0 0 0 0 0 0 0 0 0 0 0

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0 Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 0 0 0 0 0 0 0 0 0 0 0 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 0 0 0 0 0 0 0 0 0 0 0 Increase/ (decrease) in reserves 0 0 0 0 0 0 0 0 0 0 0 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 0 0 0 0 0 0 0 0 0 0 0 Surplus/ (deficit) of Capital Funding C-D 0 0 0 0 0 0 0 0 0 0 0 Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

Buller District Council | Draft Long Term Plan 2018-2028 95 | CUSTOMER SERVICES, SUPPORT SERVICES | CUSTOMER SERVICES, SUPPORT SERVICES

WHAT DO WE DO? WHY ARE WE INVOLVED IN THIS CONTRIBUTES TO WHAT COMMUNITY Customer Services and Support Services provides ACTIVITY? OUTCOMES? numerous functions for Customers and all of Council including: The activity supports the functioning of all Council’s activities Support Services covers all the community outcomes as and service provision. it provides the administrative and operational capacity to yy Service Centres for customer use in Westport and Reefton achieve them. yy Corporate planning and support to Governance ASSUMPTIONS AND NEGATIVE yy Financial and accounting operations FUNDING ALLOCATIONS yy Production of Annual Plans, Long Term Plans and Annual EFFECTS Reports The current plan and rating is based on the current rating Activity Funding Mechanism yy Rating operations and rates overhaul project model. General Rate Fees Capital y y Human Resources management Spend yy Information Technology management yy General administration Support Overheads Nil Nil Services reallocated to other yy Health and safety compliance and legal counsel Special Funds departments yy Monitoring and compliance of all Council Controlled organisations yy Guidance and monitoring of Holding Company performance yy Asset management yy Management functions

96 Buller District Council | Draft Long Term Plan 2018-2028 | CUSTOMER SERVICES, SUPPORT SERVICES |

KEY PERFORMANCE INDICATORS What we plan to do and our levels of service 1. To prioritise and manage operating expenditure and capital expenditure How we do it yy Provide timely and accurate information How we measure Ensure accountability to provide sound Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance governance and financial management. 2016/17: reports were provided in a Continue to provide timely and Continue to provide timely and Compliance with stated strategies in timely and accurate manner - target met. accurate reports to the Finance and accurate reports to the Finance and Audit Committee on all key financial Audit Committee on all key financial Annual Plan and Long Term Plan. (2015/16: target met). operations for further action, and operations for further action, and to monitor and proactively address to monitor and proactively address variances. variances.

2. To reduce the incidence of work-related accidents and to ensure that Council complies with Health and Safety legislation How we do it yy Provide a satisfactory level of health and safety advice and support How we measure Ensure Council has systems, procedures Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance and policies in place to comply with 2016/17: update to health and safety Continue to update systems, procedures Continue to update systems, procedures Health and Safety polices and legislation: manual has been contracted out, and policies to comply with legislation. and policies to comply with legislation. - Safety and Health in Employment Act ultimately moving toward shared 1992 services with other Coast Council’s. - Safety and Health in Employment (2015/16: in-house training on new Legislation 1995 health and safety legislation provided to all staff and councillors.) - Employment Relations Act 2000

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 CUSTOMER AND SUPPORT SERVICES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 299 280 308 284 290 313 326 318 330 328 335 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 4,163 3,737 3,899 3,761 3,793 4,482 4,453 4,517 4,665 4,651 4,731 Local authorities fuel tax, fines, infringements fees and other receipts 74 67 68 70 71 73 74 76 78 80 82 Total Operating Funding A 4,536 4,084 4,276 4,115 4,153 4,868 4,853 4,911 5,072 5,060 5,148 Applications of Operating Funding Payments to suppliers and staff 3,233 3,155 3,303 3,244 3,340 3,406 3,458 3,474 3,642 3,607 3,727 Finance costs 135 132 133 134 134 173 171 168 166 163 160 Internal charges and overheads applied 962 952 1,044 922 893 1,429 1,424 1,415 1,461 1,429 1,449 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 4,330 4,239 4,480 4,300 4,368 5,009 5,053 5,057 5,269 5,199 5,336 Surplus/ (deficit) of Operating Funding A-B 206 (156) (205) (185) (214) (141) (200) (146) (197) (139) (188)

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt (39) 0 0 0 775 (61) (65) (68) (71) (75) (79) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C (39) 0 0 0 775 (61) (65) (68) (71) (75) (79) Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 167 240 124 80 1,018 130 363 153 104 211 162 Increase/ (decrease) in reserves 0 (396) (329) (265) (457) (332) (627) (367) (373) (425) (429) Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 167 (156) (205) (185) 561 (202) (264) (214) (268) (214) (267) Surplus/ (deficit) of Capital Funding C-D (206) 156 205 185 214 141 200 146 197 139 188 Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

98 Buller District Council | Draft Long Term Plan 2018-2028 | PROPERTY | PROPERTY

Cemeteries WHAT DO WE DO? Council operates the following cemeteries: WHY ARE WE INVOLVED IN THIS Buildings and structures yy Orowaiti ACTIVITY? Provision of public buildings and structures. yy Mokihinui yy The provision and maintenance of amenities and reserves yy Reefton - Suburban creates a pleasant environment in which to live, work and Cultural and community facilities yy Reefton - Boatmans play, which is an important part of the vision for the district. Amenities and reserve areas provide for social interaction Provision of community halls, theatres, aquatic centres, Council provides adequate land and plots to meet the district’s and promote sport and recreation. burial needs. sporting facilities, meeting facilities. yy Council owned buildings allows for cost effective provision of essential property for community use. Housing for the elderly Commercial property yy The provision of public toilet facilities assists with Assist with property transfers and acquisitions along with Council provides affordable housing for the elderly. There are promoting the health and well-being of the community and Council property licences, leases and legal agreements 46 housing units provided. environment and enhances visitor experience. pertaining to property. yy 4 in Karamea yy Jointly funding facilities with other agencies allows the yy 16 in Reefton public access to facilities at an acceptable cost. Amenities, parks, domains, reserves and public spaces yy 26 in Westport yy Housing for the elderly assists ratepayers to remain in the Council provides and maintains active and passive recreational district close to public facilities. land and facilities in the Buller District to meet community Fleet management and environmental needs. These areas may be managed by Fleet supervision for all Council vehicles is managed. ASSUMPTIONS Council, or in conjunction with local Reserve or Domain Boards, It is assumed that? and Hall Committees. Urban renewals and revitalisation y This includes the provision of gardens, sports grounds, green y the current levels of service are maintained for parks and In conjunction with the “roading and transport activity”, reserves maintenance. areas, playgrounds and parks. property assists with urban revitalisation which provides a yy unused and abandoned grounds will be rationalised and more pleasant environment for our communities by improving depending on Gazette Notice limitations, options and Public toilets urban spaces. Urban revitalisation and renewal shapes and opportunities will be considered to reduce maintenance articulates space by giving form, shape and character to Public toilet facilities are provided by Council at Westport, costs. buildings, neighbourhoods and towns. Reefton, Springs Junction, Fox River, North Beach and yy Council will not construct any new pensioner units in Waimangaroa. Council assists in the provision of public Urban development in the “roading and transport activity” Westport, Karamea and Reefton. toilet facilities at Karamea, Granity, Carters Beach, Inangahua includes the use of plantings, street treatments and decorative y Junction and Ikamatua. y the Urban Revitalisation project will offer opportunities to measures with a focus on the beautification of main rationalise the Council building and property portfolio with thoroughfares with street flags and hanging floral baskets. a view to achieve long term benefits for the district and also Property management achieve integration with progressive community makeover Council owns and manages a number of properties and Events Facilitation projects. buildings in the district for providing sites and buildings for Supporting events associated with the various aspects of the community needs. property portfolio. NEGATIVE EFFECTS yy There are no negative effects.

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A budget of $408,000 has been included for 2019/20, and Public toilets COMMUNITY OUTCOMES & HOW WE $416,000 has been included for 2020/21 to complete Westport Council has planned to construct new or refurbish the existing CONTRIBUTE TO STRATEGIC GOALS Urban Design projects which interlock in with the option public toilets in Reefton. A budget of $350,000 has been of a civic centre and Buller Area Community Hub. You can included in year-2 of the Long Term Plan subject to Council This activity supports the following community outcomes: find more information about these options in the District receiving a Central Government subsidy of $200,000 that will Revitalisation section of the Long Term Plan under “Key Issues”. be applied for in 2018/19. Well-being yy By ensuring our parks and reserves are healthy and safe. Civic centre and Buller area community hub Housing for the elderly yy By providing areas for people to engage in healthy activities. In the 2015-2025 long term plan the Council focussed on building rationalisation and how we might get better value Rental Income: Environment out of our significant property assets some of which were Much of the Housing for the Elderly was built some years yy By offering opportunities for people to contribute to not utilised or under-utilised and/or required significant ago at costs that were only a fraction of today’s costs. Council projects that improve our district’s environment. earthquake strengthening and upgrade. That Long Term Plan has upgraded insulation in all currently rented 45 units and considered moving the civic centre from Brougham House to renewed much of the heating to new air-conditioning heat Learning incorporate the Clocktower. pump units. yy By providing the opportunity to learn through social Rental costs for the elderly are likely to increase at a rate interaction and recreation. The 2018-2028 Long Term Plan proposes to combine a civic centre with the library, Emergency Operations Centre, museum which is higher than the expected percentage increase in Prosperity with potential space for other retail and service providers as Superannuation. Rental supplements are available from the Ministry of Social Development, provided the tenant yy By contributing to the district’s image and attracting well as community organisations. meets certain assets and income thresholds. Council cannot businesses, skills and tourism. The Long Term Plan includes an allowance of $200,000 for guarantee tenants will meet the criteria but expects that most 2018/19 to progress the Westport Revitalisation project, will and these supplements will significantly lower the impact CHANGES IN LEVEL OF SERVICE including investigating the location options for a Civic centre/ for qualifying pensioner and beneficiaries. Buller Area Community Hub, and $500,000 has been budgeted District revitalisation changes proposed for urban for 2019/20 to take the preferred option from concept to ‘build Council has a policy that operating costs associated with the renewals and revitalisation ready’ The capital amounts budgeted for the Civic Centre/ provision of pensioner housing must continue to be self- funding over time. Council has recently utilised a “community placemaking Buller Area Community Hub for 2020/21 ($3m), 2021/22 process” to engage with the community for revitalisation ($1.5m) are based on quantity survey information and are The existing units are maintained and the amount of projects. The first project to be completed from this process estimated building costs only. depreciation funded is capped at the level required to meet was the 7 Day Makeover completed outside the NBS Theatre loan principal repayments and minor capital renewals only. in Westport. The 7 Day Makeover created an attractive and Punakaiki master-plan If no new units or replacement are planned then there is no functional space which was delivered at low cost and is well With the support of central government funding and in purpose providing additional depreciation funds for that utilised by visitors and locals. The Long Term Plan includes new conjunction with the work the Department of Conservation purpose. budgets for this new level of service to be continued. are doing to redevelop Dolomite point (one of Buller’s major tourism attractions) and in partnership with both Grey District $100,000 has been budgeted to carry out new urban renewal Council and West Coast Regional Council, Buller District and revitalisation projects in Westport for the first 3 years of the Council are leading a masterplan process for Punakaiki LTP. in 2018/19. This is to ensure that the infrastructure and $100,000 has also been budgeted for the first 3 years of community facilities are future proofed and the development the Long Term Plan in order to allow other communities in as a whole is ‘fit for the future’. This is a significant project and the Buller District to use the 7 Day Makeover / community Council has a key role in advocacy and facilitation. placemaking process to take ownership of their public spaces and revitalise our towns in a cost effective manner. This would be contestable funding with specific criteria relating to community placemaking principles and in alignment with enhancing the new district ‘themes’.

100 Buller District Council | Draft Long Term Plan 2018-2028 | PROPERTY |

Following is an indication of the pensioner rentals and rental supplements available from 1 April 2018 (if tenant(s) qualify FUNDING ALLOCATIONS SIGNIFICANT CAPITAL EXPENDITURE based on them having no assets or extra income above NZ Funding allocations are as per the Revenue and Finance Policy. Over the 10 years of the long term plan, Council expects to Super payments, for confirmation of individual entitlements spend the following: you must contact Work and Income NZ: Activity Funding Mechanism yy Parks, playgrounds and green spaces for increased level of Single: (per Couple: (per General Fees Capital service $765,000 week) week) Rate Spend yy Punakaiki Community Facility $102,000 (in 2019/20) Reserves 100% Nil Special Funds yy Reefton Toilet Renewal or Rebuild $350,000 (in 2019/20 New Single $134 New Couple $176 subject to receipt of Government Subsidy) less: Subsidy $24 less: Subsidy $17 Loans yy Housing for the Elderly $365,000 mainly for heating Net Rent after $110 Net Rent after $159 Public Toilets 100% Nil upgrades and re-roofing subsidy subsidy Cemeteries 75% 25% yy Old Carnegie Library $106,000 for seismic assessment and upgrade work on this historically significant building (if tenant qualifies) (if tenant qualifies) Housing for the Elderly Nil 100% yy Clocktower $50,000 to rebuild or replace the clock Council will maintain all other assets to the same levels of Property – community 95% 5% mechanism (in 2018/19) service. Property – private Nil 100% yy Holcim purchase $5.26m (in 2018/19) yy Urban Revitalisation $7.19m for a civic centre and revitalisation projects yy Under the new Better Local Government legislation Council has a statutory requirement to take a 30 year plus asset management approach. Good stewardship and prudent use of ratepayer money would suggest that there is no point in spending money unless the finished building is fit for purpose for at least the next 25 years. Overall there would also appear to be an opportunity to rationalise the building stock and to release some capital tied up in buildings that may not be required in the future. yy There is also a need for urgency. Due to public health and staff safety, Council is required to deal with earthquake risks. The value of any earthquake expenditure can be significantly enhanced if it is undertaken with a renovation and rationalisation programme.

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KEY PERFORMANCE INDICATORS What we plan to do and our levels of service 1. To provide and manage parks and reserves How we do it yy Provide parks and reserves that meet the community and environmental needs How we measure Ensure 100% checks on contractor’s Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance standard of maintenance on active 2016/17: 100% achieved, checks Weekly safety checks are undertaken Weekly safety checks are undertaken recreation areas are carried out. were undertaken on the maintenance by the maintenance contractor for the by the maintenance contractor for the contracts, with any defects notified to whole period. whole period. the contractor who then remediated. (2015/16: 100%). Conduct weekly safety and maintenance 2016/17: 100% achieved, the contractor inspections on playground equipment. completed weekly safety checks on all playground equipment. (2015/16: 100%). 2. To provide and manage housing for the elderly How we do it yy Provide affordable and well maintained elderly housing How we measure Ensure at least 90% occupancy of elderly Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance persons housing. 2016/17: 98.5%. Occupancy rate of elderly persons Occupancy rate of elderly persons housing to be 90% or greater. housing to be 90% or greater. (2015/16: 99%). Ensure at least 80% satisfaction on 2016/17: 41 questionnaires were Satisfaction rate of elderly housing Satisfaction rate of elderly housing elderly housing provided. returned from a total of 45 with a provided to be at least 80%. provided to be at least 80%. satisfaction rate of 88%. (2015/16: 33 questionnaires returned out of 45, with a satisfaction rate of 82.5%). 3. To provide and manage cemeteries How we do it yy Provide and manage cemeteries that meet community needs. yy Provide adequate plots and land to meet the districts burial needs. How we measure Ensure provision and management of Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance cemeteries to provide for community 2016/17: cemetery facilities were Continue to provide and maintain Continue to provide and maintain health. maintained to the appropriate national cemetery facilities to the appropriate cemetery facilities to the appropriate Maintain cemetery facilities to the standard with public records available national standard, with public records national standard, with public records appropriate national standard, with on request - target met. available on request. available on request. public records available on request. (2015/16: target met). Ensure sufficient burial plots are 2016/17: no extensions were required. Continue to provide adequate plots and Continue to provide adequate plots and available in all wards to meet current land to meet the district’s burial needs. land to meet the district’s burial needs. (2015/16: no extensions were required). and future demands.

102 Buller District Council | Draft Long Term Plan 2018-2028 | PROPERTY |

What we plan to do and our levels of service 4. To provide and manage sufficient public toilets to meet the needs How we do it yy Provision of public toilets has health and economic benefits supporting local communities, budinesses and visitiro destinations How we measure Ensure facilities are cleaned, inspected Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance and maintained to a serviceable 2016/17: toilet facilities were inspected, Continue to clean, inspect and maintain Continue to clean, inspect and maintain standard. cleaned and maintained to an toilet facilities to a serviceable standard. toilet facilities to a serviceable standard. acceptable standard. The main toilets were inspected and cleaned daily, the other toilets inspected and cleaned 2 or 3 times a week depending on season and usage - target met. (2015/16: target met.). New toilets at Springs Junction are cleaned a minimum of twice daily due to high traffic volumes post Kaikoura earthquake and SH1 road closure. 5. To provide and manage Council’s properties How we do it yy Provide property management of Council’s properties to enable service delivery and safety for its users. How we measure Ensure Council’s properties are Performance Year 1 - 3 target: 2018/19 - 2020/21 Year 4 - 10 target: 2021/22 - 2027/28 performance maintained and safe by responding to 2016/17: 100% of service requests were Continue to maintain Council’s Continue to maintain Council’s service requests 100% of the time in 10 responded to within 10 working days - properties and respond to 100% of properties and respond to 100% of working days or less. target met. service requests within 10 working days. service requests within 10 working days. (2015/16: 100% - target met).

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 PROPERTY $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 1,455 1,911 2,098 2,095 2,211 2,063 2,075 1,959 2,020 2,022 2,054 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 373 408 476 416 501 657 683 652 654 645 648 Local authorities fuel tax, fines, infringements fees and other receipts 1,229 1,544 1,545 1,555 1,575 1,596 1,625 1,629 1,668 1,710 1,753 Total Operating Funding A 3,057 3,863 4,119 4,066 4,287 4,316 4,384 4,240 4,343 4,377 4,454 Applications of Operating Funding Payments to suppliers and staff 2,050 2,557 2,680 2,598 2,604 2,596 2,684 2,642 2,693 2,745 2,908 Finance costs 74 121 325 344 407 470 456 361 346 328 262 Internal charges and overheads applied 379 484 513 492 529 546 577 555 592 573 617 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 2,503 3,163 3,518 3,434 3,539 3,612 3,717 3,558 3,630 3,646 3,786 Surplus/ (deficit) of Operating Funding A-B 554 700 601 632 747 703 666 682 712 731 668

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 200 200 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt 1 5,138 392 2,879 1,287 (269) (283) (298) (314) (330) (347) Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 201 5,338 392 2,879 1,287 (269) (283) (298) (314) (330) (347) Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 6,168 1,287 3,756 1,788 122 135 128 141 134 148 - to replace existing assets 600 465 387 117 64 55 54 27 83 20 59 Increase/ (decrease) in reserves 155 (594) (681) (361) 181 257 194 229 174 247 113 Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 755 6,038 993 3,511 2,034 434 383 384 399 401 321 Surplus/ (deficit) of Capital Funding C-D (554) (700) (601) (632) (747) (703) (666) (682) (712) (731) (668) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

104 Buller District Council | Draft Long Term Plan 2018-2028 | COUNCIL CONTROLLED ORGANISATIONS | COUNCIL CONTROLLED ORGANISATIONS

1. NATURE AND SCOPE OF ACTIVITIES 2. SIGNIFICANT POLICIES AND OBJECTIVES The principal objective of Buller Holdings Limited is to operate as a successful business while Buller Holdings Limited working for the benefit of its shareholders. The nature and scope of Buller Holdings Limited is to provide a holding company structure for the ownership of selected Council assets and investments. In pursuing these objectives the company is guided by the following key principles. Buller Holdings provides a commercial focus in the governance and administration of Buller Financial performance: District Council’s commercial assets, enabling more effective management of Council’s The company is committed to operating as a successful business and achieving a competitive commercial activities to achieve maximum returns on behalf of ratepayers. rate of return on its investments while working for the benefit of the shareholders. It will be striving to minimise operating costs and manage the assets and liabilities in a prudent way. The WestReef Services Limited definition of financial return takes into account social, economic and environmental needs of the Westreef Services Limited is 100% owned by Buller Holdings Limited. community The nature and scope of WestReef Services Limited activities is predominantly to provide contracting services for physical works in the Buller Region and the West Coast of the South Service: Island. Its activities include maintenance and construction services for: The company recognises that the needs of the group’s major customers are paramount and is yy Road and bridges - maintenance and construction committed to meeting those needs. It also recognises the need to develop its customer base to ensure sustainability of the business in the future. yy Response for Road and Civil Defence Emergencies yy Park and reserves (including associated facilities) - maintenance and construction Employee relations: yy Utility services (water and sewerage reticulation) - maintenance and construction The holding company values its employees and will recruit and retain employees with the skills yy Vehicle workshop repairs necessary to run the business and will provide opportunities for staff training and development. yy Response to road and civil defence emergencies It will ensure that employees are fairly treated and provided with good and safe working yy Roadside vegetation control conditions. yy Property maintenance The holding company, together with its employees, will create a culture that recognizes yy Septic waste disposal the importance of being competitive, the value of delivering a high quality of customer Buller Recreation Limited service and the mutual benefit of continued employment. This will involve effective internal communications. Buller Recreation Limited owns and operates the Pulse Energy Recreation Centre, a sports and leisure complex that was formally opened on 18 April 2009, and provides a range of leisure Safety and environment services to the district as summarised below: The company has a zero tolerance to safety and environmental incidents. The company yy Recreational swimming and learn to swim programmes undertakes to comply with all Health and Safety legislation requirements. yy Aquatic sports events yy Indoor court sports competitions and events yy Fitness centre programmes and classes yy Outdoor turf sports yy Corporate, trade and social events

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Buller Recreation Limited 3. KEY PERFORMANCE TARGETS Objective Performance Measure 2018/19 Targets Buller Holdings Limited Financial a) Achieving budget revenue and expenditure Operate within budget Objective Performance Measure 2018/19 Targets Performance Financial a) Delivery of an unaudited quarterly report Provision of quarterly Service a) Achieve fitness centre membership of at Membership of 455pa Performance consisting of a revenue statement, statement reports to Council Performance least 455 per annum with a retention rate Retention rate of more of financial position, cashflows and KPI’s by 16 of more than 75% than 75% November, 16 February and 16 May b) Achieve regular patronage of aquatic Average 4,080 visits per Commentary on the results will also be services to an average of 4,080 visits per month provided. month b) The Directors shall provide a Statement of Statement of Intent c) Achieve swimming lesson students in 150 swimming students Intent by 1 March for approval by Council programmes of 150 students (averaged c) Financial performance of the Group will be Annual review over four swimming terms) measured against the forecasts and KPI’s in the d) Ensuring compliance with legislation and Nil serious harm accidents approved Statements of Intent industry best practice in health and safety to customers or staff Service a) The Board of Directors will meet with the Informal report required management 100% compliance Buller District Council Councillors on a formal for Council as requested. with health and safety basis. Meet with Council as procedures requested. Employee a) Undertake a staff satisfaction survey and Staff satisfaction survey to Leadership, provide feedback on staff engagement. be undertaken. Westreef Services Limited Development b) Hold meetings with all staff every 4 months. 4 monthly staff meetings. and Retention Objective Performance Measure 2018/19 Targets c) Review succession plans for key positions Update succession plans. and undertake training in the next 12 Financial a) To achieve a pre-tax operating profit of at 12% pre-tax operating months. Performance least 12% on gross revenue (before any profit subvention payment) . Asset a) Maintain a comprehensive asset Asset management plan Management management plan for the facility, plant and developed b) To grow revenue from competitively Target 40% of gross equipment procured work. revenue b) Complete maintenance and replacement in Monthly report on asset Service a) To renew its TQS1 certification as required. Achieve renewal accordance with asset management plan management Performance b) Meeting with major client, BDC engineers, Meet monthly to obtain feedback on specific contract performance. c) Support activities involved with the social Support minimum of 15 and environmental development in the communities activities community. Employee a) Ensure succession plans are put in place for Succession plans in place Leadership, all senior management positions. Development b) Hold staff meetings to ensure effective Meetings to be held and Retention communication with all staff. weekly with minutes kept c) Maintain a zero tolerance to loss time LTI’s to be nil incidents.

106 Buller District Council | Draft Long Term Plan 2018-2028 | OTHER COUNCIL CONTROLLED TRADING ORGANISATIONS | OTHER COUNCIL CONTROLLED ORGANISATIONS

BULLER HEALTH TRUST DENNISTON HERITAGE TRUST TOURISM WEST COAST 1. Nature and scope of activities to be provided 1. Nature and scope of activities to be provided 1. Nature and scope of activities to be provided The Buller Health Trust was established in May 1997. The The Denniston Heritage Charitable Trust was Tourism West Coast is the official Regional Tourism purpose of the Trust is the preservation of public health established in July 2007. The purpose of the Trust is Organisation for the West Coast region. Out of a total and wellbeing in the Buller District. The Trust’s current the preservation, enhancement and interpretation of board size of five, Council appoints one member of the activities include the provision of low interest loans to Denniston’s natural, social, industrial and geological board, along with the Westland District Council and Grey medical professionals. The Trust also owns the Westport history. The Trust’s current activities include maintaining District Council who also appoint one member each. Dental Clinic following the departure of the previous historical installations at Denniston to allow visitors The industry also appoints one member. Dentist in November 2005 and currently employs a to experience the richness of the historic and natural Council currently provides annual funding to the dentist. heritage, supported by facilities and information and organisation and has signalled in this document for this interpretation panels at Denniston. to continue. 2. Significant policies and objectives 2. Significant policies and objectives yy The Mayor and Chief Executive are appointed as 2. Significant policies and objectives Trustees. yy The Board of the Denniston Heritage Trust comprises yy Enhance the West Coast’s basic promotional of at least 7 Trustees, of which 1 is appointed by the yy The objective of the trust is to support the provision capabilities of medical services in the Buller District. Buller District Council. yy Co-ordinate the work of development and yy The objective of the Trust is to maintain the historical yy The Buller District Council provides funding to the promotional agencies Trust by way of loans. features of Denniston and to encourage visitors, while at the same time managing unwanted visitor impacts yy Secure long term funding 3. Key performance targets on the local community, natural environment and yy Provide advisory and support services for the local yy To support the provision of appropriate medical heritage site. Tourism industry y services to the Buller community y The Buller District Council does not provide funding 3. Key performance targets yy To operate on a breakeven basis to the Trust. yy The Chairperson of the Board or CEO of Tourism West 3. Key performance targets Coast will address Council on an annual basis yy To meet the objectives of the Trust as well as assist yy The Annual Report will be presented to Council in coordinating developments associated with the within two months of adoption Denniston Experience Mine Tours. yy To promote Denniston as a premium visitor location rich in natural and historic heritage.

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WESTPORT AIRPORT 1. Nature and scope of activities to be provided Westport Airport is a joint venture between the Crown and Buller District Council, with each holding a 50% interest. Management and control of Westport Airport is vested in the Buller District Council. The purpose of the joint venture is to operate Airport facilities at Westport. This includes the provision, maintenance, upgrading and enhancement of services and facilities to accommodate the landing of aircraft and the safe and efficient facilitation of passengers and cargo, having regard to the regulatory requirements of the Civil Aviation Authority of New Zealand

2. Significant policies and objectives yy To operate as close as possible to a commercial business in a cost effective and efficient manner. yy To maintain the Westport Airport assets yy To enter into any commercial undertakings that will complement the airport operations 3. Key performance targets yy To improve financial performance and to operate in a cost effective manner. Financial performance will be judged against projected income and expenditure. yy To systematically improve the quality and cost effectiveness of services provided to its customers. yy To operate the airport with due regard to sound cultural and environmental issues arising from the community. yy To comply with the Resource Management Act and undertake its activities in an environmentally sound manner having regard to the interest of the community.

108 Buller District Council | Draft Long Term Plan 2018-2028 | OTHER COUNCIL CONTROLLED TRADING ORGANISATIONS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 WESTPORT AIRPORT $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 84 84 106 81 78 83 76 79 67 57 44 Targeted rates 0 0 0 0 0 0 0 0 0 0 0 Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 Fees and charges 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 Local authorities fuel tax, fines, infringements fees and other receipts 94 100 102 104 106 109 111 114 117 120 123 Total Operating Funding A 178 184 208 186 185 191 187 193 184 176 167 Applications of Operating Funding Payments to suppliers and staff 106 116 131 117 116 122 120 131 126 133 132 Finance costs 0 0 0 0 0 0 0 0 0 0 0 Internal charges and overheads applied 15 14 15 14 15 16 15 16 15 14 14 Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 Total Applications of Operating Funding B 121 131 146 131 130 137 136 147 141 147 145 Surplus/ (deficit) of Operating Funding A-B 57 54 62 54 55 54 51 46 43 29 21

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 Development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0 Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 0 0 0 0 0 0 0 0 0 0 0 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 0 0 0 0 0 0 0 0 0 0 0 - to replace existing assets 5 655 20 10 83 0 0 0 0 0 596 Increase/ (decrease) in reserves 52 (601) 42 44 (28) 54 51 46 43 29 (575) Increase/ (decrease) in investments 0 0 0 0 0 0 0 0 0 0 0 Total applications of Capital Funding D 57 54 62 54 55 54 51 46 43 29 21 Surplus/ (deficit) of Capital Funding C-D (57) (54) (62) (54) (55) (54) (51) (46) (43) (29) (21) Funding Balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0

Buller District Council | Draft Long Term Plan 2018-2028 109 | FINANCIALS |

FINANCIALS

INCLUDES THE FOLLOWING FINANCIAL REPORTS:

Forecast Statement of Comprehensive Revenue and Expenses...... 111

Forecast Movements in Equity...... 112

Forecast Statement of Financial Position...... 113

Forecast Statement of Cashflows...... 115

Notes to the Financial Statements...... 117

Forecast Statement of Capital Expenditure...... 123

Forecast Funding Impact Statement...... 124

Rating Examples...... 135

Assumptions...... 137

Forecast Reserve Funds...... 144

Accounting Policies...... 146

110 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FORECAST STATEMENT OF 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 COMPREHENSIVE REVENUE and EXPENSES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Revenue NOTES: General Rates 1 8,314 8,466 8,906 8,900 9,323 9,483 9,459 9,392 9,788 9,872 9,955 Targeted Rates 2 5,517 5,866 6,032 6,253 6,465 6,629 6,746 6,850 6,944 7,041 7,207 Rates Penalties 150 150 150 160 160 160 170 170 170 180 180 Metered Water Charges 204 204 209 214 219 224 230 236 242 248 255 Subsidies & Grants 3 4,442 4,342 3,851 3,964 2,749 2,547 2,732 2,792 2,746 2,879 2,957 Fees & Charges 4 3,091 3,192 3,267 3,271 3,326 3,430 3,457 3,504 3,635 3,678 3,771 Development Contributions 105 50 51 52 53 27 28 28 29 30 31 Vested Assets 101 50 51 52 53 54 56 57 58 60 61 Profit on Sale of Assets 0 481 490 459 479 498 276 284 292 301 310 Revaluation of Investment Properties 0 169 163 166 176 187 199 202 214 227 231 Holding Company Distribution 910 1,000 1,000 1,100 1,100 1,100 1,200 1,200 1,200 1,250 1,250 Investment Income 5 636 746 801 766 932 975 967 1,011 1,111 1,096 1,161 Total Operating Revenue 23,470 24,716 24,972 25,355 25,035 25,316 25,519 25,725 26,430 26,862 27,370

Operating Expenditure Employee Benefit Expenses 4,658 4,773 4,846 4,929 5,018 5,109 5,206 5,306 5,412 5,521 5,638 Depreciation and Amortisation 6 5,462 6,453 6,481 6,627 6,426 6,610 6,583 6,802 6,826 7,126 7,137 Finance Costs 7 1,115 1,192 1,384 1,451 1,547 1,622 1,605 1,549 1,598 1,575 1,548 Other Expenses 11,499 12,002 13,450 12,361 12,119 12,277 12,608 12,572 13,037 13,178 13,583 Writeoff of Assets 350 501 512 525 22,038 555 572 590 609 630 653 Total Operating Expenditure 8 23,084 24,921 26,674 25,893 47,148 26,172 26,573 26,820 27,482 28,029 28,558 Net Surplus (deficit) before Taxation 386 (205) (1,702) (538) (22,113) (856) (1,054) (1,095) (1,052) (1,168) (1,188) Income Tax Expense 0 0 0 0 0 0 0 0 0 0 0 Net Surplus (deficit) after Taxation 386 (205) (1,702) (538) (22,113) (856) (1,054) (1,095) (1,052) (1,168) (1,188)

Comprehensive Revenue and Expense Increase in Infrastructure Revaluation Reserve 0 0 11,932 0 11,772 0 12,817 0 13,848 0 15,157 Total Comprehensive Revenue and Expense 386 (205) 10,230 (538) (10,341) (856) 11,763 (1,095) 12,795 (1,168) 13,969

Buller District Council | Draft Long Term Plan 2018-2028 111 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FORECAST MOVEMENTS IN EQUITY 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Equity as at 1 July 325,979 330,186 329,981 340,211 339,674 329,333 328,477 340,240 339,145 351,940 350,773 Total Comprehensive Revenue and Expenses 386 (205) 10,230 (538) (10,341) (856) 11,763 (1,095) 12,795 (1,168) 13,969 Total Equity at end of year 326,365 329,981 340,211 339,674 329,333 328,477 340,240 339,145 351,940 350,773 364,742

Components of Equity Accumulated Funds 166,725 170,354 168,915 168,654 159,758 158,651 157,664 156,419 155,199 154,007 152,253 Reserves 5,385 5,372 5,109 4,833 5,050 5,300 5,234 5,384 5,551 5,576 6,142 Assets Revaluation Reserve 154,255 154,255 166,187 166,187 164,525 164,525 177,342 177,342 191,190 191,190 206,347 Total Equity at end of year 326,365 329,981 340,211 339,674 329,333 328,476 340,240 339,145 351,940 350,773 364,742

112 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FORECAST STATEMENT OF 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 FINANCIAL POSITION $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Current Assets Cash and Bank 1,030 676 897 1,394 1,291 1,004 699 1,274 860 956 877 Trade and Other Receivable 4,858 5,116 5,169 5,249 5,182 5,240 5,282 5,325 5,471 5,560 5,666 Inventories 13 14 14 15 14 15 15 15 15 15 16 Other Current Assets 35 35 35 35 35 35 35 35 35 35 35 Short Term Investments 13,784 16,064 17,064 16,064 19,564 20,564 20,064 21,064 23,064 22,804 23,804 Total Current Assets 19,720 21,905 23,179 22,757 26,087 26,857 26,096 27,713 29,445 29,371 30,397

Non Current Assets Investment In Council Controlled Organisations 20,035 20,123 20,229 20,360 20,420 20,435 20,616 21,562 23,079 23,654 24,496 Investment Properties 7,568 8,223 8,335 8,449 8,572 8,705 8,849 8,994 9,150 9,318 9,488 Infrastructural Assets 294,822 293,963 303,798 301,587 289,788 287,492 297,924 295,459 306,810 304,080 316,541 Other Non Current Assets 19,595 26,952 27,644 30,169 30,713 29,460 28,936 28,241 27,516 26,847 26,807 Intangible Assets 50 179 143 113 881 773 711 609 548 462 401 Total Non Current Assets 342,070 349,440 360,150 360,679 350,374 346,865 357,036 354,865 367,103 364,362 377,733 Total Assets 361,790 371,345 383,330 383,435 376,461 373,723 383,131 382,578 396,548 393,733 408,130

Buller District Council | Draft Long Term Plan 2018-2028 113 | FINANCIALS |

Current Liabilities Trade and Other Payables 3,982 4,299 4,601 4,467 5,816 4,515 4,584 4,626 4,741 4,835 4,926 Derivative Financial Instruments 55 60 64 63 81 63 64 65 66 68 69 Employee Benefits 451 487 521 506 659 512 520 524 537 548 558 Current Portion of Term Debt 107 114 125 2,167 265 384 2,403 422 443 1,724 487 Total Current Liabilities 4,595 4,961 5,312 7,202 6,821 5,473 7,570 5,638 5,787 7,175 6,040

Non Current Liabilities Derivative Financial Instruments 1,100 700 700 700 700 700 700 700 700 700 700 Environmental Provisions 1,483 1,281 1,247 1,209 1,044 1,013 982 953 924 894 866 Bond Deposits 82 82 82 82 82 82 82 82 82 82 82 Employee Entitlement $140 140 140 140 140 140 140 140 140 140 140 Term Debt 28,025 34,199 35,637 34,429 38,341 37,838 33,417 35,921 36,975 33,969 35,561 Total Non Current Liabilities 30,830 36,403 37,806 36,560 40,307 39,773 35,321 37,796 38,820 35,785 37,348

Equity Accumulated Funds 166,725 170,354 168,915 168,654 159,758 158,651 157,664 156,419 155,199 154,007 152,253 Reserves 5,385 5,372 5,109 4,833 5,050 5,300 5,234 5,384 5,551 5,576 6,142 Asset Revaluation Reserve 154,255 154,255 166,187 166,187 164,525 164,525 177,342 177,342 191,190 191,190 206,347 Total Equity 326,365 329,981 340,211 339,674 329,333 328,476 340,240 339,145 351,940 350,773 364,742 Total Equity and Liabilities 361,790 371,345 383,330 383,435 376,461 373,723 383,131 382,578 396,548 393,733 408,130

114 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FORECAST STATEMENT OF CASHFLOW 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

CASHFLOWS FROM OPERATING ACTIVITIES Cash will be provided from: Rates 13,981 14,482 15,089 15,315 15,952 16,276 16,377 16,413 16,903 17,094 17,343 Other Income 7,532 7,534 7,118 7,234 6,075 5,977 6,189 6,296 6,381 6,557 6,728 Interest Received 636 746 800 764 928 971 965 1,010 1,111 1,095 1,160 Dividend Income & Subvention Payments Received 1,220 1,254 1,260 1,366 1,372 1,351 1,457 1,464 1,471 1,528 1,536 23,369 24,016 24,267 24,679 24,327 24,576 24,989 25,182 25,865 26,274 26,768

Cash will be applied to: Payments to Suppliers and Employees 17,227 16,712 18,043 17,559 15,715 18,941 17,808 17,903 18,496 18,711 19,252 Interest Paid 1,115 1,192 1,384 1,451 1,547 1,622 1,605 1,549 1,598 1,575 1,548 18,342 17,904 19,427 19,010 17,262 20,563 19,413 19,452 20,094 20,286 20,800 Net Cash from Operating Activities 5,027 6,111 4,840 5,669 7,065 4,013 5,575 5,730 5,771 5,988 5,968

CASHFLOWS FROM INVESTING ACTIVITIES Cash will be provided from: Investments Realised 0 0 0 2,000 0 0 2,000 0 0 1,260 0 Sale of Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 Sale of Investment Property 100 625 635 1,133 1,153 1,174 466 475 484 494 505 100 625 635 3,133 1,153 1,174 2,466 475 484 1,754 505

Cash will be provided from: Purchase of Fixed Assets 7,225 12,206 5,596 8,006 6,773 4,076 4,262 4,208 4,227 4,346 5,065 Purchase of Equity Investments 35 88 106 131 60 15 181 946 1,517 576 841 Purchase of Investments 500 0 1,000 1,000 3,500 1,000 1,500 1,000 2,000 1,000 1,000 7,760 12,295 6,702 9,137 10,333 5,091 5,943 6,153 7,744 5,922 6,906 Net Cash from Investing Activities (7,660) (11,670) (6,067) (6,004) (9,179) (3,917) (3,477) (5,679) (7,259) (4,168) (6,401)

Buller District Council | Draft Long Term Plan 2018-2028 115 | FINANCIALS |

CASHFLOWS FROM FINANCING ACTIVITIES Cash will be provided from: Loans raised 2,585 5,585 1,573 3,000 2,275 0 0 946 1,517 0 841 2,585 5,585 1,573 3,000 2,275 0 0 946 1,517 0 841

Cash will be applied to: Payments of Loans 107 114 125 2,167 265 384 2,403 422 443 1,724 487 107 114 125 2,167 265 384 2,403 422 443 1,724 487 Net Cash from Financing Activities 2,478 5,471 1,448 833 2,011 (384) (2,403) 524 1,074 (1,724) 354

Net Increase (decrease) in Cash (155) (88) 221 497 (103) (288) (304) 575 (414) 96 (79)

Opening Cash as at 1 July 1,185 764 676 897 1,394 1,291 1,004 699 1,274 860 956

Closing Cash as at 30 June 1,030 676 897 1,394 1,291 1,004 699 1,274 860 956 877

116 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 1: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 REQUIRED FROM GENERAL RATES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Democracy 1,238 1,210 1,284 1,346 1,468 1,397 1,503 1,407 1,460 1,577 1,479 Support 299 280 308 284 290 313 326 318 330 328 335 Community Services 3,594 3,772 3,810 3,861 3,866 3,919 3,907 3,988 4,059 4,075 4,125 Regulatory Services 984 1,023 1,068 1,031 1,081 1,156 1,196 1,190 1,254 1,223 1,274 Property Management, Amenities & Reserves 1,455 1,911 2,098 2,095 2,211 2,063 2,075 1,959 2,020 2,022 2,054 Roading & Urban Development 2,133 1,941 2,005 2,011 2,210 2,362 2,281 2,345 2,517 2,516 2,579 Water 0 0 0 0 0 0 0 0 0 0 0 Solid Waste 337 270 271 266 296 321 269 266 267 262 262 Wastewater $0 0 0 0 0 0 0 0 0 0 0 In House Professional Services (28) (11) (10) (18) (14) 12 5 3 8 (3) (9) Airport 84 84 106 81 78 83 76 79 67 57 44 Stormwater 498 499 523 530 544 559 572 581 597 594 598 10,594 10,979 11,462 11,486 12,030 12,184 12,211 12,136 12,580 12,651 12,741

Less: Investment Income (1,220) (1,363) (1,405) (1,326) (1,447) (1,441) (1,382) (1,374) (1,421) (1,349) (1,356) Other Income - Dividends (910) (1,000) (1,000) (1,100) (1,100) (1,100) (1,200) (1,200) (1,200) (1,250) (1,250) (2,130) (2,363) (2,405) (2,426) (2,547) (2,541) (2,582) (2,574) (2,621) (2,599) (2,606) Rates Penalties (150) (150) (150) (160) (160) (160) (170) (170) (170) (180) (180) Total General Rates Requirement 8,314 8,466 8,906 8,900 9,323 9,483 9,459 9,392 9,788 9,872 9,955

Buller District Council | Draft Long Term Plan 2018-2028 117 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 2: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 TARGETED RATES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Water 2,427 2,632 2,741 2,879 2,952 3,024 3,066 3,105 3,149 3,196 3,267 Solid Waste 654 627 653 654 680 716 734 736 747 760 792 Wastewater 2,436 2,606 2,638 2,720 2,833 2,889 2,946 3,009 3,047 3,085 3,148 Community Services 0 0 0 0 0 0 0 0 0 0 0 Total Targeted Rates 5,517 5,866 6,032 6,253 6,465 6,629 6,746 6,850 6,944 7,041 7,207

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 3: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 SUBSIDIES AND GRANTS $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Amenities & Reserves 200 200 0 0 0 0 0 0 0 0 0 Community Services 456 456 456 456 256 56 56 56 56 56 56 Roading & Urban Development 3,346 3,244 3,352 3,464 2,448 2,446 2,630 2,688 2,641 2,773 2,850 Water 403 401 0 0 0 0 0 0 0 0 0 Solid Waste 37 42 43 44 45 46 47 48 49 50 51 Total Subsidies and Grants 4,442 4,342 3,851 3,964 2,749 2,547 2,732 2,792 2,746 2,879 2,957

118 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 4: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 FEES AND CHARGES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Democracy 0 0 41 0 0 43 0 0 47 0 0 Community Services 551 346 353 360 367 375 384 393 402 412 423 Regulatory Services 894 880 898 916 935 956 978 1,000 1,024 1,050 1,076 Property Management, Amenities & Reserves 1,229 1,544 1,545 1,555 1,575 1,596 1,625 1,629 1,668 1,710 1,753 Roading & Urban Development 150 150 153 157 160 164 168 172 177 182 187 Water 0 0 0 0 0 0 0 0 0 0 0 Solid Waste 89 95 97 99 101 103 106 108 111 113 116 Wastewater 5 5 5 5 6 6 6 6 6 6 6 Support Activities 74 67 68 70 71 73 74 76 78 80 82 In House Professional Services 0 0 0 0 0 0 0 0 0 0 0 Stormwater 5 5 5 5 5 5 5 5 6 6 6 Airport 94 100 102 104 106 109 111 114 117 120 123 Total Fees and Charges 3,091 3,192 3,267 3,271 3,326 3,430 3,457 3,504 3,635 3,678 3,771

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 5: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 INVESTMENT INCOME $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Interest, Dividends & Subventions 1,220 1,363 1,405 1,326 1,447 1,441 1,382 1,374 1,421 1,349 1,356 less Internal Interest (584) (617) (605) (560) (514) (466) (415) (364) (310) (253) (195) Total Investment Income 636 746 801 766 932 975 967 1,011 1,111 1,096 1,161

Buller District Council | Draft Long Term Plan 2018-2028 119 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 6: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 DEPRECIATION $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Democracy 0 0 0 0 0 0 0 0 0 0 0 Community Services 320 264 257 232 222 212 182 173 175 181 186 Regulatory Services 26 28 23 19 25 22 29 30 30 27 23 Property Management, Amenities & Reserves 568 676 669 626 696 704 692 640 640 640 634 Roading & Urban Development 2,652 3,041 3,046 3,180 2,870 2,890 2,888 3,026 3,024 3,177 3,175 Water 626 939 959 1,016 1,026 1,084 1,094 1,158 1,167 1,239 1,249 Solid Waste 82 82 81 81 79 76 77 77 76 74 74 Wastewater 705 863 875 924 939 994 1,007 1,068 1,082 1,148 1,162 Support Services 205 251 247 220 236 274 259 265 266 270 273 In House Professional Services 11 8 10 10 13 19 23 23 23 24 20 Airport 57 54 62 54 55 54 51 46 43 29 21 Stormwater 210 249 251 264 266 280 282 297 299 316 318 Total Depreciation 5,462 6,453 6,481 6,627 6,426 6,610 6,583 6,802 6,826 7,126 7,137

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 7: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 FINANCE COSTS $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Interest Expenses 1,699 1,809 1,988 2,011 2,061 2,088 2,020 1,913 1,908 1,828 1,742 Less Internal Interest (584) (617) (605) (560) (514) (466) (415) (364) (310) (253) (195) Total Finance Costs 1,115 1,192 1,384 1,451 1,547 1,622 1,605 1,549 1,598 1,575 1,548

120 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 8: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 OPERATING EXPENDITURE PER ACTIVITY $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Democracy 1,238 1,210 1,324 1,346 1,468 1,440 1,503 1,407 1,506 1,577 1,479 Community Services 4,231 4,089 4,132 4,188 4,198 4,257 4,251 4,339 4,416 4,440 4,520 Regulatory Services 1,888 1,884 1,945 1,918 1,987 2,090 2,148 2,158 2,244 2,235 2,310 Property Management, Amenities & Reserves 3,071 3,839 4,187 4,060 4,236 4,317 4,409 4,198 4,270 4,286 4,420 Roading & Urban Development 6,441 6,656 7,871 6,998 6,215 6,353 6,420 6,646 6,732 6,976 7,071 Water 2,508 2,951 2,816 2,888 2,931 3,023 3,060 3,141 3,186 3,272 3,325 Solid Waste 1,115 1,044 1,058 1,070 1,118 1,165 1,132 1,149 1,172 1,187 1,211 Wastewater 2,193 2,326 2,347 2,401 2,432 2,513 2,539 2,605 2,636 2,705 2,736 Support Services 4,535 4,490 4,728 4,520 4,604 5,283 5,312 5,322 5,536 5,469 5,609 In House Professional Services 779 904 922 930 953 999 1,012 1,031 1,059 1,071 1,089 Airport 178 184 208 186 185 191 187 193 184 176 167 Stormwater 484 521 536 549 558 578 586 602 612 628 640 28,661 30,097 32,073 31,054 30,885 32,210 32,559 32,791 33,553 34,023 34,577

Less: PLUS Writeoff of Assets 350 501 512 525 22,038 555 572 590 609 630 653 LESS Internal Interest (584) (617) (605) (560) (514) (466) (415) (364) (310) (253) (195) LESS Internal Recoveries (5,343) (5,060) (5,307) (5,126) (5,260) (6,126) (6,143) (6,197) (6,370) (6,371) (6,477) Total Operating Expenditure 23,084 24,921 26,674 25,893 47,148 26,172 26,573 26,820 27,482 28,029 28,558

Buller District Council | Draft Long Term Plan 2018-2028 121 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP NOTE 9: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 INTERNAL RECOVERIES $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Community Services 0 0 0 0 0 0 0 0 0 0 0 Regulatory Services 0 0 0 0 0 0 0 0 0 0 0 Amenities and Reserves 373 408 476 416 501 657 683 652 654 645 648 Support 4,163 3,737 3,899 3,761 3,793 4,482 4,453 4,517 4,665 4,651 4,731 In House Professional Services 807 915 932 949 967 987 1,007 1,028 1,051 1,074 1,099 Total Internal Recoveries 5,343 5,060 5,307 5,126 5,260 6,126 6,143 6,197 6,370 6,371 6,477

122 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS |

AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FORECAST STATEMENT OF 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 CAPITAL EXPENDITURE $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Support Services Information Technology, Vehicle 240 124 80 1,018 130 363 153 104 211 162 Replacement 167 Regulatory Services Vehicle Replacement, Rural Fire 2 0 31 32 38 67 0 35 0 79 Equipment 39 Community Services Urban Streetscape Vision 2010 0 0 0 0 0 0 0 0 0 0 Projects 60 Theatres, Recreation Facilities and 112 104 226 108 111 113 116 118 121 124 Libraries 162 Promotion & Development 0 0 0 0 0 0 0 0 0 0 0 Amenties and Reserves Reserves, Playgrounds and 248 268 117 120 68 70 71 119 75 77 Camping Grounds 133 Cemeteries 8 20 9 66 9 0 9 0 10 0 10 Council Properties and Buildings, 6,339 1,265 3,637 1,713 68 101 57 58 63 111 Public Toilets 456 Housing for the Elderly 3 26 132 52 11 41 8 27 37 16 9 Roading Roading 1,616 1,467 1,499 1,532 1,185 1,213 1,243 1,274 1,307 1,342 1,380 Footpaths, Security Cameras, 218 222 227 232 238 244 250 256 263 271 Street Banners 221 Solid Waste Contracted Refuse (litter bins & 35 30 8 8 8 8 8 9 9 9 transfer stn) 138 Sewerage Westport Sewer 416 724 704 699 876 826 758 813 786 805 824 Reefton Sewer 161 166 169 173 283 180 184 244 193 198 203 Little Wanganui Sewer 39 2 27 22 28 2 29 2 42 2 35 Water Westport Water 2,761 704 619 687 650 720 659 733 727 770 727 Reefton Water 143 195 138 163 145 148 152 156 160 164 169 District Water Supplies 488 702 19 56 20 20 21 21 22 22 23 Stormwater Stormwater Upgrad36es and 355 211 216 221 226 232 237 243 249 255 Replacements 205 PSBU Vehicle Replacement 5 0 36 5 32 38 0 45 0 36 0

Airport Rock wall and Runway 5 655 20 10 83 0 0 0 0 0 596 replacement

Total Capital Expenditure 7,225 12,206 5,596 8,006 6,773 4,076 4,262 4,208 4,227 4,346 5,065

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(all figures in this policy are GST exclusive) General Rate Differential Categories Percentage of General Rate General Rate (Cents per $ Land Value) 1. GENERAL RATES Multi Residential 122 0.008% 0.67323 General Rates includes both the general (differential) rate and a uniform annual general charge. Multi Residential 123 1.442% 2.34493 General Rates are used to fund or part fund Democracy, Economic Development, Community Multi Residential 124 0.062% 2.29862 Services, Regulatory Services, Amenities and Reserves, Roading, Solid Waste Management, Storm-water and Airport activities. Multi Residential 125 0.132% 1.23110 Multi Residential 126 0.155% 1.80950 1.1 General (Differential) Land Rate Commercial 131 0.899% 1.62948 The general rate is set and assessed on the land value of all rateable land in the district, on a differential basis based on location, area, land use, and the activities that are permitted, Commercial 132 0.249% 0.96491 controlled or discretionary for the area in which the land is situated as per the District Plan. Commercial 133 1.758% 2.64775 The definition of the differential categories is set out in this Funding Impact Statement. Commercial 134 9.824% 3.65019 Table 1 – Differentials (general rates exclusive of GST) Commercial 135 0.125% 1.67541 Commercial 136 0.304% 0.77914 General Rate Differential Categories Percentage of General Rate General Rate (Cents per $ Land Value) Commercial 138 0.019% 0.14086 Residential 101 0.925% 0.33461 Commercial 139 1.190% 0.98353 Residential 102 0.181% 0.26282 Commercial 140 0.951% 1.56789 Residential 103 0.648% 0.35594 Rural 141 18.601% 0.19768 Residential 104 0.808% 0.34556 Rural 142 1.217% 0.19179 Residential 105 0.354% 0.24250 Rural 143 3.787% 0.15779 Residential 106 18.871% 1.06099 Rural Residential 151 4.206% 0.39976 Residential 107 1.439% 0.85006 Rural Residential 152 3.079% 0.36528 Residential 108 1.125% 0.67513 Rural Small Holding 161 1.527% 0.27571 Residential 109 0.616% 0.58614 Rural Small Holding 162 0.110% 0.16476 Residential 110 0.488% 0.62302 Rural Small Holding 163 0.218% 0.20876 Residential 111 0.210% 0.20651 Rural Small Holding 164 0.050% 0.09469 Residential 112 0.555% 0.41780 Industrial 171 2.929% 6.67629 Residential 113 0.392% 0.40085 Industrial 172 9.704% 5.93639 Residential 114 1.042% 0.46519 Industrial 173 5.121% 1.67179 Residential 115 2.554% 0.74401 Industrial 174 2.108% 12.48965 Multi Residential 121 0.016% 1.05412 100.0%

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1.2 Uniform Annual General Charge (UAGC) Water Supply Scheme Rates Differential category Differential Targeted Rate The Council will set and assess a uniform annual general charge (UAGC) as a fixed amount per (refers to use by number Factor (GST excl) rating unit. of connections) The Uniform Annual General Charge will be $434.78 (exclusive of GST) per rating unit. 11 5.20 $3,848.00 12 5.60 $4,144.00 Expected Yield (Collect) Westport - all other rating sectors The expected collect from the General differential Rates is calculated to be $5,667,108 (excluding GST). The expected collect from the uniform annual general charge is calculated to be 1 1.00 $740.00 $2,799,130 (excluding GST). 2 1.70 $1,258.00 3 2.30 $1,702.00 2. WATER 4 2.80 $2,072.00 Targeted water supply rates are set for each rating unit connected, or able to be connected within certain scheme areas. The rates are set on a per rating unit basis with a differential applied 5 3.20 $2,368.00 for each rate based on the use of the rating unit and the number of connections. 6 3.60 $2,664.00 A ‘connection’ is defined as where a rating unit is connected to the water supply in any scheme 7 4.00 $2,960.00 area, whether the connection is from the main supply line, or from any other line that is 8 4.40 $3,256.00 connected to the main supply. 9 4.80 $3,552.00 The fixed targeted charge is also applied in some scheme areas based on the availability of the service, being rating units which are not connected but are able to be connected (‘serviceable’). 10 5.20 $3,848.00 A rating unit is regarded as serviceable if the rating unit lies within 50 metres of the water 11 5.60 $4,144.00 reticulation system. 12 6.00 $4,440.00 For the Westport, Reefton, Mokihinui, Ngakawau/Hector, and Waimangaroa water supplies, only Reefton - Multi-residential only connected properties are rated (there is no set rate or charge for serviceable properties). 1-2 1.00 $550.43 Refer to the definition of the differential categories set out in this Funding Impact Statement . 3 1.70 $935.73 Table 2 – Unit rates 4 2.30 $1,265.99 Water Supply Scheme Rates Differential category Differential Targeted Rate 5 2.80 $1,541.20 (refers to use by number Factor (GST excl) of connections) 6 3.20 $1,761.38 Westport - Multi-residential only 7 3.60 $1,981.55 1-2 1.00 $740.00 8 4.00 $2,201.72 3 1.70 $1,258.00 9 4.40 $2,421.89 4 2.30 $1,702.00 10 4.80 $2,642.06 5 2.80 $2,072.00 11 5.20 $2,862.24 6 3.20 $2,368.00 12 5.60 $3,082.41 7 3.60 $2,664.00 Reefton - all other rating sectors 8 4.00 $2,960.00 1 1.00 $550.43 9 4.40 $3,256.00 2 1.70 $935.73 10 4.80 $3,552.00 3 2.30 $1,265.99

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Water Supply Scheme Rates Differential category Differential Targeted Rate Water Supply Scheme Rates Differential category Differential Targeted Rate (refers to use by number Factor (GST excl) (refers to use by number Factor (GST excl) of connections) of connections) 4 2.80 $1,541.20 Little Wanganui 5 3.20 $1,761.38 Connected 1 1.00 $220.00 6 3.60 $1,981.55 (excluding major users) 7 4.00 $2,201.72 Serviceable 1 0.50 $110.00 8 4.40 $2,421.89 Major users* 1+ 15.00 $3,300.00 9 4.80 $2,642.06 Inangahua Junction Connected 10 5.20 $2,862.24 1 1.00 $500.00 (excluding major users) 11 5.60 $3,082.41 Serviceable 1 0.50 $250.00 12 6.00 $3,302.58 Major users* 1+ 3.00 $1,500.00 Reefton - major users Granity South 1905006101 1+ 2.00 $1,100.86 Connected 1 1.00 $240.00 1905023800 1+ 2.00 $1,100.86 1905043500 1+ 2.00 $1,100.86 * Definition of major users differential categories (for other than Reefton) 1905044200 1+ 2.00 $1,100.86 Rate Valuation Reference 1905050000 1+ 2.00 $1,100.86 Little Wanganui subdivision 1878035600 1905036800 1+ 40.00 $22,017.20 Mokihinui 1879001700 Mokihinui Ngakawau-Hector 1880006300 Connected 1 1.00 $260.00 Waimangaroa 1883044300 (excluding major users) Inangahua Junction 1901009300 Major users* 1+ 8.00 $2,080.00 Ngakawau Hector Connected 1 1.00 $310.43 (excluding major users) Major users* 1+ 20.00 $6,208.60 Waimangaroa Connected 1 1.00 $370.43 (excluding major users) Major users* 1+ 3.00 $1,111.29 Punakaiki Connected 1 1.00 $900.00 Serviceable 1 0.50 $450.00

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2.1 Metered Water Supplies Table 2.2B – Categorisation of each property The following table lists the properties (by valuation reference) that fall within each of the above 2.1.1 Cape Foulwind Rural Water Supply categories: A targeted rate is set to fund the Cape Foulwind Rural Water Supply. Each farm connection is charged for consumption at a rate of $0.55 (exclusive of GST) per m³. Category Valuation reference(s) (A) 1886029000, 1886029001, 1886029003, 1886029007, 1886029013, 1886029014, 2.1.2 Westport Metered Water Supply 1886029015, 1886029019, 1886029029, 1886029030 The Council sets two rates for Westport Metered Water Supply. (B) 1886016900, 1886016901, 1886017000, 1886017100, 1886017200, 1886017201, A targeted rate is set for each connection to the Westport water supply through a meter. The 1886017300, 1886017400, 1886017500, 1886017700, 1886017701, 1886017800, rate is set as a fixed amount per connection of $740.00 (exclusive of GST). 1886017900, 1886018000, 1886018400, 1886018500, 1886018600, 1886018700, Each metered supply is then charged at a rate of $1.90 (exclusive of GST) per cubic metre (m³) for 1886018900, 1886019200, 1886019201, 1886019400, 1886019500, 1886019600, consumption over 400m³ per connection per annum. 1886019700, 1886019800, 1886019900, 1886028700, 1886028900, 1886029002, 1886029004, 1886029006, 1886029008, 1886029009, 1886029010, 1886029012, 1886029017, 1886029018, 1886029020, 1886029025, 1886029026, 1886029031, 2.2 Punakaiki Water Supply 1886029033, 1886029034, 1886029035, 1886029036, 1886031601, 1886031602, A targeted rate is set for each rating unit that is connected to the Punakaiki water supply. 1886031604, 886031607, 1886031610, 1886031611, 1886031614, 1886031615 The rate is set on a differential basis, based on use of the rating unit. The rate for differential (C) 1886018001 factor 1.0 is $900.00 (excluding GST). (D) 1886029021, 1886029028, 1886031609 Table 2.2A – General description of differential categories and differential factor (E) 1886019000 Differential category Differential Targeted Rate (F) 1886029023 factor (GST Exclusive) (G) 1886018100 (A) Section Only 0.5 $450.00 (H) 1886031616 (B) Single Residential Dwelling (Including A Home-Based 1.0 $900.00 (I) 1886031200 Business) Any future change to the use of any property within the Punakaiki water supply which results in (C) Department Of Conservation Depot 1.0 $900.00 a change to the use (as set out in Table 2.2A) will result in a change to the differential category (D) Two Residential Dwellings On One Rating Unit 2.0 $1,800.00 the property is in, from the next rating year. (E) Motel complex of more than 4 units 2.0 $1,800.00 Council may require any user on the water supply to have a meter installed, if it deems it (F) Three residential dwellings on one rating unit 3.0 $2,700.00 necessary to do so, in the interests of fairness within the supply area. (G) Hostel (backpackers) 4.0 $3,600.00 (H) Tavern, motel complex, and dwelling 6.0 $5,400.00 (I) Camping ground and dwelling 11.0 $9,900.00

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Expected Yield (Collect) Table 3 – Unit rates The expected collects for each of the Water Supply areas (GST exclusive) are: Sewerage Scheme Differential category (refers to use by Differential Targeted Rate Water supply area Collect rates number of connections) factor (GST excl) Little Wanganui Subdivision $16,984 Westport and Carters Beach - multi-residential only Mokihinui $12,220 1-2 1.00 $880.00 Ngakawau-Hector $54,326 3 1.70 $1,496.00 South Granity $5,520 4 2.30 $2,024.00 Waimangaroa $53,343 5 2.80 $2,464.00 Westport $2,028,932 6 3.20 $2,816.00 Reefton $369,177 7 3.60 $3,168.00 Punakaiki $82,350 8 4.00 $3,520.00 Inangahua Junction $16,250 9 4.40 $3,872.00 Cape Foulwind $74,360 10 4.80 $4,224.00 11 5.20 $4,576.00 3. SEWAGE DISPOSAL 12 5.60 $4,928.00 Targeted sewage disposal rates are set for each rating unit connected, or able to be connected Westport and Carters Beach - all other rating sectors within certain scheme areas, as follows. 1 1.00 $880.00 The rates are set on the number of connections, with a differential applied for each rate based on 2 1.70 $1,496.00 the use of the rating unit. 3 2.30 $2,024.00 A ‘connection’ is defined as a rating unit, or each separately used or inhabited portion (SUIP) of a rating unit, which is connected to the disposal line in any scheme area, whether the connection 4 2.80 $2,464.00 is to the main disposal line, or from any other line that is connected to the main disposal line. 5 3.20 $2,816.00 A differential is also applied based on the availability of the service. The categories applied are 6 3.60 $3,168.00 rating units connected to the disposal system, and rating units within certain scheme areas 7 4.00 $3,520.00 which are not connected but are able to be connected (“serviceable”). A rating unit is regarded as serviceable if it is within 30 metres of the sewerage reticulation system. 8 4.40 $3,872.00 For the Westport and Reefton, only connected rating units are rated (there is no differential for 9 4.80 $4,224.00 serviceable rating units) with the exception of those rating units able to be connected to the 10 5.20 $4,576.00 Orowaiti sewerage upgrade to the Westport Scheme. These rating units, although serviceable, shall pay the full service charge(s) applicable to that scheme. 11 5.60 $4,928.00 12 6.00 $5,280.00 Reefton - multi-residential only Refer to the definition of the differential categories set out in this Funding Impact Statement. 1-2 1.00 $580.00 3 1.70 $986.00 4 2.30 $1,334.00

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Sewerage Scheme Differential category (refers to use by Differential Targeted Rate rates number of connections) factor (GST excl) 4. WASTE MANAGEMENT (FORMERLY REFUSE & 5 2.80 $1,624.00 RECYCLING) 6 3.20 $1,856.00 For the purposes of the cost of providing waste management (refuse and recycling) throughout the district, three zones have been established, each having its own level of service. 7 3.60 $2,088.00 8 4.00 $2,320.00 The localities of these zones are: 9 4.40 $2,552.00 Zone Locality 10 4.80 $2,784.00 1 All of the district except north of the Mokihinui River and east of Blacks Point to which 11 5.20 $3,016.00 the collection service is provided 12 5.60 $3,248.00 2 North of the Mokihinui River (Karamea) Reefton - all other rating sectors 3 East of Blacks Point (Maruia) 1 1.00 $580.00 The levels of service for each are: 2 1.70 $986.00 3 2.30 $1,334.00 Zone Locality 4 2.80 $1,624.00 1 The provision of a collection service for bins and bags, plus the cost of the waste management disposal area(s) within the zone. 5 3.20 $1,856.00 2 The cost of the waste management disposal area(s) within the zone. 6 3.60 $2,088.00 3 The cost of the waste management disposal area(s) within the zone. 7 4.00 $2,320.00 8 4.40 $2,552.00 4.1 Waste Management - Zone 1 9 4.80 $2,784.00 The cost of providing recycling and refuse collection is recovered from those properties that receive the service, in the form of a targeted annual waste management rate of a fixed amount 10 5.20 $3,016.00 per set of two bins (one wheelie bin and one basket) delivered to those properties within the 11 5.60 $3,248.00 Zone 1 area. Thus, any property that has been delivered more than one set of bins, is deemed to 12 6.00 $3,480.00 be receiving the service for each of those sets of bins, and shall be liable for the fixed amount for each set of bins delivered to the property. Little Wanganui The bins are used for the fortnightly recycling collection, while bags are available for purchase Connected 1 1.00 $630.43 at various district outlets for the use of weekly refuse collection. The annual waste management Serviceable 1 0.50 $315.22 rate for Zone 1 will be $114.78 per set of two bins (excluding GST).

Expected Yield (Collect) 4.2 Waste Management - Zone 2 The expected collects for each of the Sewerage areas (GST exclusive) are: The cost of providing a waste management landfill activity within the Zone 2 area is recovered from those rating units within the area. Sewerage Area Collect The annual waste management charge for Zone 2 will be $85.22 per rating unit (excluding GST). Little Wanganui Subdivision $38,267 Westport $2,209,152 4.3 Waste Management - Zone 3 Reefton $337,212 The cost of providing a waste management landfill activity within the Zone 3 area is recovered from those rating units within the area. The annual waste management charge for Zone 3 will be $85.22 per rating unit (excluding GST).

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Expected Yield (Collect) Residential 105 The expected collects for each of the Waste Management zones (GST exclusive) are: - includes the residential rating units, or parts of rating units, on the seaward side of the State Highway 67 in the townships of Hector, Ngakawau, and Granity. Waste Management Area Collect Residential 106 Zone 1 $571,043 - includes the residential rating units, or parts of rating units, within the valuation rolls numbered Zone 2 $46,955 18840, 18950, 18960, and 18970 (but not including any properties to the east of the Orowaiti Zone 3 $9,374 River or south of Stafford Street, and those properties on Orowaiti Road, Morgans Lane, Forbes, Coates, and Shelswell Streets, and selected properties at the northern end of Derby Street). Lump sum contributions: Residential 107 The Council does not accept lump sum contributions in respect of any of the targeted rates. - includes the residential rating units, or parts of rating units, on Orowaiti Road, Morgans Lane, Forbes, Coates, and Shelswell Streets, and selected properties at the northern end of Derby 5. DIFFERENTIAL CATEGORIES Street. Note that the first five digits of any valuation reference comprises the valuation roll in which the Residential 108 reference is found. - includes the residential rating units, or parts of rating units, within the township of Carters Also note that subject to the rights of objection to the rating information database set out in Beach (but excluding those properties located on Marine Parade). Section 29 of the Local Government (Rating) Act 2002, the Council is the sole determiner of the categories applied to a rating unit. Residential 109 - includes the residential rating units, or parts of rating units, within the township of Carters Residential Categories: Beach located on Marine Parade. Rating units, or parts of rating units, being less than 4,000 square metres in area, having no more than one residential dwelling, and being primarily used for, or able to be used for, residential Residential 110 living. - includes the residential rating units, or parts of rating units, within the valuation roll numbered 18850 (but excluding the townships of Carters Beach, Omau, and Tauranga Bay and valuation Residential 101 reference 1885022301). - includes residential rating units, or parts of rating units, within the valuation rolls numbered 18780 (but excluding the Little Wanganui Subdivision); 18800 (but excluding the township of Residential 111 Granity); 18820; 18830 (but excluding the townships of Waimangaroa and Conns Creek); 18840 - includes the residential rating units, or parts of rating units, within the valuation roll numbered (but excluding the settlement of Snodgrass, and those properties in the greater Westport area to 18860 (but excluding the townships of Charleston and Punakaiki and the Ross Subdivision). the west of the Orowaiti River); 19000; 19010; 19040; 19080; and 19081. Residential 112 Residential 102 - includes the residential rating units, or parts of rating units, within the townships of Omau and - includes residential rating units, or parts of rating units, within the valuation roll numbered Tauranga Bay, plus valuation reference 1885022301. 18810, plus the settlement of Snodgrass. Residential 113 Residential 103 - includes the residential rating units, or parts of rating units, within the township of Charleston. - includes the residential rating units, or parts of rating units, within the valuation roll numbered 18790 (but excluding the township of Hector), plus the Little Wanganui Subdivision, and Conns Residential 114 Creek. - includes the residential rating units, or parts of rating units, within the township of Punakaiki and the Ross Subdivision. Residential 104 - includes the residential rating units, or parts of rating units, on the inland side of the Residential 115 State Highway 67 in the townships of Hector, Ngakawau, and Granity, plus the township of - includes the residential rating units, or parts of rating units, within the valuation roll numbered Waimangaroa. 19050.

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Multi Residential: Commercial 134 Rating units that have more than the one dwelling, excluding farm properties and communal - includes commercial rating units, or parts of rating units, within the valuation roll numbered residences. Where practicable, Council may have the rating unit divided into each of its separate 18950 (excluding 1895009100, 1895021600 and 1895032100), and 2000081380. uses, so each division can be assessed for rates in a different differential category. Commercial 135 Multi Residential 121 - includes the rating unit under valuation references 1885002400BB, 1885002600, and - includes those rating units under valuation references 1878011803 and 1908009900. 1885022400. Multi Residential 122 Commercial 136 - includes the rating unit under valuation reference 1878037247. - includes commercial rating units, or parts of rating units, within the valuation roll numbered 18850 (excluding 1885002400BB, 1885002600, and 1885022400). Multi Residential 123 - includes the multi-residential rating units within the valuation rolls numbered 18840 (excluding Commercial 138 1884000500, 1884001900 and 1884001903); 18950; 18960; and 18970. - includes commercial rating units within the valuation roll 18860, north of the Fox River. Multi Residential 124 Commercial 139 - includes those rating units within the valuation roll numbered 18860. - includes commercial rating units within the valuation roll 18860, south of the Fox River. Multi Residential 125 Commercial 140 - includes those multi-residential rating units within the valuation roll numbered 18850. - includes commercial rating units, or parts of rating units, within the valuation roll numbered 19050. Multi Residential 126 - includes those multi-residential rating units within the valuation roll numbered 19050. Rural: Properties being 10 hectares or greater, used exclusively or principally for agricultural, Commercial: horticultural, and/or pastoral purposes, including forestry, or vacant land that is able to be used Rating units, or portions of rating units, used primarily for, or able to be used in terms of for such purposes in terms of the District Plan. the District Plan for, carrying out a commercial or trading enterprise, including retail and/or wholesale, community, personal, business and repair services, offices, hotels, motels, camps and Rural 141 air transport. - includes rural rating units, or parts of rating units, within the valuation rolls numbered 18780; 18810; 18820; 18830; 18840; 18950; 18960; 18970; 19000; 19010; 19040; 19050; 19080; and Commercial 131 19081. - includes commercial rating units, or parts of rating units, within the valuation rolls numbered 18780; 18820; 19000; 19010; 19040; 19080; and 19081; and those rating units under valuation Rural 142 references 1884018600 and 1884018701. - includes rural rating units, or parts of rating units, within the valuation rolls numbered 18790; and 18800. Commercial 132 - includes commercial rating units, or parts of rating units, within the valuation rolls numbered Rural 143 18790; 18800; 18810; 18830, and those rating units under valuation references 2000074765, and - includes rural rating units, or parts of rating units, within the valuation rolls numbered 18850; 2000075336. and 18860.

Commercial 133 Rural Residential: - includes commercial rating units, or parts of rating units, within the valuation rolls numbered Properties being greater than 4,000 square metres but less than 4 hectares, primarily used for 18840 (excluding 1884018600 and 1884018701); 18960; and 18970; and those rating units under the purpose of residential living. valuation references 1895021600, 1895032100, 2000076417, and 2000081373.

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Rural Residential 151 Industrial Other: - includes rural residential rating units, or parts of rating units, within the valuation rolls Properties used primarily in the following, as well as all associated land and buildings related to: numbered 18780; 18810; 18820; 18830; 18840; 18950; 18960; 18970; 19000; 19010; 19040; yy transport (road, rail, sea), excepting those properties defined as Industrial Harbour; 19050; 19080; and 19081. yy utility services (communications, electricity, gas, water, sanitation); Rural Residential 152 yy the manufacture of food, drink, and tobacco; - includes rural residential rating units, or parts of rating units, within the valuation rolls yy the processing of textiles, leather, and fur; numbered 18790; 18800; 18850; and 18860. yy the processing of timber products, including manufacturing and storage sites (ie sawmills and timber yards, wooden articles of manufacture such as furniture) Rural Small Holding: yy all other types of mining, not included in the sectors defined as Industrial Clay-Cement or Properties being greater than 4 hectares but less than 10 hectares, used exclusively or principally Industrial Coal; for agricultural, horticultural and/or pastoral purposes, including forestry. yy engineering, metalwork appliances, and machinery works; yy chemicals, plastics, rubber, and paper manufacture; Rural Small Holding 161 yy other manufacturing industries not defined above; - includes rural small holding rating units, or parts of rating units, within the valuation rolls yy depots and yards of contractors, central and local government; demolition, and fumigation numbered 18780; 18810; 18820; 18830; 18840; 18850; 18950; 18960; 18970; 19000; 19010; and pest control firms; and 19040; 19050; 19080; and 19081. yy vacant land designated for the primary purpose of industrial use Rural Small Holding 162 Industrial 173 - includes rural small holding rating units, or parts of rating units, within the valuation rolls - includes those industrial rating units, or parts of rating units, that fall within the definition of numbered 18790; and 18800. Industrial Other above. Rural Small Holding 163 Industrial Harbour - includes rural small holding rating units, or parts of rating units, within the valuation roll - properties used for harbour and associated activities. numbered 18860 (but excluding those units within the valuation reference ranges 1886003000 to 1886003600 and 1886023800 to 1886027700). Industrial 174 - includes those industrial rating units, or parts of rating units, that fall within the definition of Rural Small Holding 164 Industrial Harbour above. - includes rural small holding rating units, or parts of rating units, within the valuation reference ranges of 1886003000 to 1886003600 and 1886023800 to 1886027700. Industrial Clay-Cement Properties used primarily in the extraction of lime or clay, and/or used, or able to be used, in the manufacture, storage, and/or distribution of cement. Industrial 171 - includes those industrial rating units, or parts of rating units, that fall within the definition of Industrial Clay-Cement above. Industrial Coal: Properties used primarily in the extraction, storage, and/or distribution of coal. Industrial 172 - includes those industrial rating units, or parts of rating units, that fall within the definition of Industrial Coal above.

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6. SUIP (SEPARATELY USED OR INHABITED PART) OF A RATING UNIT – DEFINITION A separately used or inhabited part of a rating unit includes: yy any part or parts of a rating unit that is used or occupied by any person, other than the ratepayer, having a right to use or inhabit that part by virtue of a tenancy, lease, licence or other agreement, or yy any part or parts of a rating unit that is/are used or occupied by the ratepayer for more than one single use. Examples of separately used or inhabited parts of a rating unit include: yy A residential property that contains two or more separately occupiable units, flats or houses, each of which is separately inhabited or is capable of separate inhabitation. yy A commercial, or other non-residential property containing separate residential accommodation in addition to its commercial, farming or other primary use. yy A commercial premise that contains separate shops, kiosks or other retail or wholesale outlets, each of which is operated as a separate business or is capable of operation as a separate business. yy An office block which contains several sets of offices, each of which is used by a different business or which is capable of operation as separate businesses.

Council recognises that there are certain instances where the above situations will occur, but in circumstances that do not give rise to separate uses or inhabitations. These specific instances are: yy Where a business, farm, orchard, vineyard or horticultural operation contains accommodation on a rent-free basis for the owner, staff or share-milkers associated with the enterprise’s productive operation. yy Where a residential property contains not more than one additional separately inhabited part, or where members of the owners family inhabit the separate part on a rent-free basis. yy Where an orchard, vineyard or horticultural operation contains a staff for the sale of goods produced solely by the operation, a residence that provides accommodation on a rent-free basis for the owner and staff of the operation.

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AP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP FUNDING IMPACT STATEMENT: 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BULLER DISTRICT COUNCIL $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Operating Funding Sources of Operating Funding General rates, uniform annual general charge, rates penalties 8,314 8,466 8,906 8,900 9,323 9,483 9,459 9,392 9,788 9,872 9,955 Targeted rates 5,517 5,866 6,032 6,253 6,465 6,629 6,746 6,850 6,944 7,041 7,207 Subsidies and grants for operating purposes 2,249 2,239 2,314 2,391 1,791 1,833 1,877 1,923 1,973 2,025 2,081 Fees and charges 204 204 209 214 219 224 230 236 242 248 255 Internal charges and overheads recovered 1,546 1,746 1,801 1,866 2,032 2,075 2,167 2,211 2,311 2,346 2,411 Local authorities fuel tax, fines, infringements fees and other receipts 3,241 3,342 3,417 3,431 3,486 3,590 3,627 3,674 3,805 3,858 3,951 Total Operating Funding A 21,071 21,863 22,679 23,054 23,316 23,834 24,106 24,285 25,063 25,391 25,861 Applications of Operating Funding Payments to suppliers and staff 15,590 16,208 17,733 16,726 16,502 16,751 17,178 17,242 17,813 18,061 18,582 Finance costs 1,115 1,192 1,384 1,451 1,547 1,622 1,605 1,549 1,598 1,575 1,548 Internal charges and overheads applied 0 567 563 564 634 635 635 636 637 638 638 Other operating funding applications 567 17,967 19,680 18,741 18,684 19,007 19,419 19,428 20,048 20,274 20,768 Total Applications of Operating Funding B 17,272 3,896 2,999 4,313 4,633 4,827 4,687 4,857 5,015 5,117 5,093 Surplus/ (deficit) of Operating Funding A-B 3,799 54 62 54 55 54 51 46 43 29 21

Capital Funding Sources of Capital Funding Subsidies and grants for capital expenditure 1,758 1,668 1,102 1,138 723 679 820 834 739 819 842 Development and financial contributions 105 50 51 52 53 27 28 28 29 30 31 Increase/(decrease) in debt 2,478 5,471 1,448 833 2,011 (384) (2,403) 524 1,074 (1,724) 354 Gross proceeds from sale of assets 100 625 635 1133 1153 1174 466 475 484 494 505 Lump sum contributions 435 435 435 435 235 35 35 35 35 35 35 Other dedicated capital funding 0 0 0 0 0 0 0 0 0 0 0 Total Sources of Capital Funding C 4,876 8,248 3,671 3,591 4,175 1,532 (1,054) 1,895 2,361 347 1,766 Capital Expenditure - to meet additional demand 0 0 0 0 0 0 0 0 0 0 0 - to improve the level of service 2,798 7,443 1,774 4,255 2,299 645 670 677 704 711 740 - to replace existing assets 4,427 4,764 3,822 3,751 4,474 3,431 3,591 3,531 3,523 3,635 4,325 Increase/ (decrease) in reserves 1,315 (687) 439 (1,235) 882 1,109 (1,094) 1,125 1,148 (70) 448 Increase/ (decrease) in investments 135 625 635 1,133 1,153 1,174 466 1,420 2,001 494 1,346 Total applications of Capital Funding D 8,675 12,144 6,670 7,904 8,808 6,359 3,633 6,753 7,376 4,771 6,859 Surplus/ (deficit) of Capital Funding C-D (3,799) (3,896) (2,999) (4,313) (4,633) (4,827) (4,687) (4,857) (5,015) (5,117) (5,093) Funding Balance ((A-B)+(C-D)) $0 0 0 0 0 0 0 0 0 0 0

134 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS | RATING EXAMPLES |

2018/19 RATING EXAMPLES (WITH COMPARISONS TO PREVIOUS YEARS)

SECTOR Res 101 Res 103 Res 103 Res 103 Res 104 Res 104 Karamea Little Mokihinui Seddonville Hector Waimangaroa Location Wanganui Land Value $43,000 $57,000 $76,000 $32,000 $48,000 $40,000 General Rates 143.88 202.89 270.51 113.90 165.87 138.23 UAGC 434.78 434.78 434.78 434.78 434.78 434.78 Targeted Water Rate 0 220.00 260.00 0 310.43 370.43 Targeted Sewer Disposal Rate 0 630.43 0 0 0 0 Targeted Solid Waste Rate 85.22 85.22 114.78 114.78 114.78 114.78 Net rates $663.88 $1,573.32 $1,080.08 $663.47 $1,025.87 $1,058.23 GST $99.58 $236.00 $162.01 $99.52 $153.88 $158.73 Total rates $763.46 $1,809.32 $1,242.09 $762.99 $1,179.85 $1,216.96 Comparison to Previous Year $729.36 $1,745.36 $1,220.15 $754.33 $1,170.33 $1,184.94 % Change 4.68% 3.66% 1.80% 1.15% 0.80% 2.70%

SECTOR Res 106 Res 106 Res 108 Res 113 Res 114 Res 101 Westport Westport Carters Charleston Punakaiki Ikamatua Location (Brougham) (Russell) Beach Land Value $60,000 $54,000 $76,000 $80,000 $180,000 $41,000 General Rates 636.59 572.93 513.10 320.68 837.34 137.19 UAGC 434.78 434.78 434.78 434.78 434.78 434.78 Targeted Water Rate 740.00 740.00 740.00 0 900.00 0 Targeted Sewer Disposal Rate 880.00 880.00 880.00 0 0 0 Targeted Solid Waste Rate 114.78 114.78 114.78 114.78 114.78 114.78 Net rates $2,806.16 $2,742.50 $2,682.67 $870.24 $2,286.90 $686.75 GST $420.92 $411.38 $402.40 $130.54 $343.04 $103.01 Total rates $3,227.08 $3,153.88 $3,085.07 $1,000.98 $2,629.94 $789.77 Comparison to Previous Year $3,072.80 $3,000.52 $2,932.58 $989.10 $2,449.73 $780.77 % Change 5.02% 5.11% 5.20% 1.18% 7.36% 1.15% KEY: Res (Residential) Com (Commercial) RR (Rural Residential) Rur (Rural)

Buller District Council | Draft Long Term Plan 2018-2028 135 | FINANCIALS | RATING EXAMPLES |

SECTOR Res 115 Res 101 Com 131 Com 134 Com 140 Rur 141 Reefton Springs Karamea Westport Reefton Karamea Location Junction Land Value $29,000 $35,000 $90,000 $180,000 $78,000 $810.000 General Rates 215.76 117.11 1,466.53 6,570.34 1,222.95 1,601.19 UAGC 434.78 434.78 434.78 434.78 434.78 434.78 Targeted Water Rate 550.43 0 0 740.00 550.43 0 Targeted Sewer Disposal Rate 580.00 0 0 880.00 580.00 0 Targeted Solid Waste Rate 114.78 85.22 85.22 114.78 114.78 85.22 Net rates $1,895.76 $637.11 $1,986.53 $8,739.91 $2,902.95 $2,121.19 GST $284.36 $95.57 $297.98 $1,310.99 $435.44 $318.18 Total rates $2,180.13 $732.68 $2,284.51 $10,050.89 $3,338.39 $2,439.37 Comparison to Previous Year $2,112.98 $732.97 $2,231.13 $9,810.08 $3,256.56 $2,384.02 % Change 3.18% (0.04%) 2.39% 2.45% 2.51% 2.32%

SECTOR Rur 143 Rur 141 RR 151 RR 152 RR 151 RR 152 Cape Grey Valley Karamea Granity Fairdown Alma Road Location Foulwind Land Value $1,750,000 $1,870,000 $118,000 $106,000 $136,000 $155,000 General Rates 2,761.40 3,696.58 471.72 387.20 543.67 566.18 UAGC 434.78 434.78 434.78 434.78 434.78 434.78 Targeted Water Rate 0 0 0 0 0 0 Targeted Sewer Disposal Rate 0 0 0 0 0 0 Targeted Solid Waste Rate 229.57 114.78 85.22 114.78 114.78 Net rates $3,425.75 $4,246.15 $991.72 $936.76 $1,093.24 $1,000.97 GST $513.86 $636.92 $148.76 $140.51 $163.99 $150.14 Total rates $3,939.61 $4,883.07 $1,140.47 $1,077.28 $1,257.22 $1,151.11 Comparison to Previous Year $3,900.35 $4,822.17 $1,101.59 $1,064.63 $1,242.30 $1,127.85 % Change 1.01% 1.26% 3.53% 1.19% 1.20% 2.06% KEY: Res (Residential) Com (Commercial) RR (Rural Residential) Rur (Rural)

136 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS | ASSUMPTIONS | ASSUMPTIONS

The Buller District Council Long Term Plan is based on a number of significant forecasting assumptions. These assumptions include assessments of a number of factors that might impact on Council and the community including a consideration of how the population may change over the next 10 years, funding of Council services, and the financial environment. The assumptions are the best reasonable assessment based on current information, but actual results may differ and these differences could be large. Council has therefore, included an assessment of how likely the actual may vary from the assumptions and what impact the variances would have on Council and the community. These are overarching assumptions relating to Council’s activities. In addition to these assumptions, activity specific assumptions are found within each of the activity sections.

Assumption Description of Risk Level of Uncertainty Impact 1. Population growth: In the prior Long Term Plan for 2015-2025, the Council assumed that the normally The recovery in Medium Council will need to reassess the growth rates and resident population as at 1 July 2015 would in the region of 10,000 persons population may take whether its projects need to be brought forward or and that there will be further declines in population to a base level of about longer dependent on delayed as part of each year’s Annual Plan or Long Term 9,500 persons post the Holcim closure. It was expected that the normal resident economic activity within Plan population would stabilise and start to rise as coal prices begin to recover as the the District. Districts economic diversity slowly expands. By the end of the 10 years covered by this plan population levels were expected to have recovered to about 10,500 persons. The March 2013 census recorded a total of 10,473 persons as being normally resident in the district. For the purposes of this Long Term Plan we have assumed that the normally resident population as at 1 July 2018 is in the region of 10,000 persons. This is post the Holcim and Reefton Globe Hill Mine closure and some rationalisation that has occurred in the mining sector. By the end of the 10 years covered by this plan we expect population levels to be relatively stable at around 9900 persons which is in line with Statistics NZ predictions. 2. Inflation/Price Changes: In preparing the Long Term Plan Council has utilised the inflation factors That inflation is higher or Medium to low There is likely to be some variation in the actual rates of as provided by Business and Economic Research Limited (BERL) to be the lower than predicted. inflation from those assumed and this will impact on the inflation factors uses to escalate expenses. financial results of Council. Refer to page 32. If the variances are significant, Council may need to consider either increasing or decreasing rates and charges or the levels of services for activities. This would be considered through the Annual Plan process. Council plans to spend $260 million in operating expenditure and $50 million in capital over the term of the plan. A 1% movement in inflation could increase or decrease costs by an average of approximately $321,000pa. There would also be an impact on debt levels. Escalation has been undertaken using the BERL indices.

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Assumption Description of Risk Level of Uncertainty Impact 3. New Zealand Transport Agency Funding: The New Zealand Transport Agency (NZTA) financial assistance rate provided That the Government Medium Any decrease in NZTA funding will require Council to to Councils roading programmes is currently 63% for Local Roads and 100% will reduce the subsidy make a decision of whether to increase funding from for assistance for the Karamea Highway which is a Special Purpose Road (SPR). available to Councils rates, reduce service levels, remove projects from the Long Term Plan or apply a mix of these options. NZTA advised Council that the FAR rate for local roads will be further increased by 1% each year for the next 3 years from 64% to 66% in year 2020/2021. This means levels of funding will not increase to take account of rising costs of providing the service. At the same time the NZTA review requires all financial assistance for roading Therefore service levels in roading will reduce, this will programmes to be judged in terms of the new One Network classifications. be particularly evident in higher road roughness levels, This Long Term Plan assumes that the local roads financial assistance rate maintenance of low volume rural roads and a reduction in will increase to 66% until the end of 2020/2021 financial year and then drop vegetation control including mowing. back to 61% for the 2021/2022 and it will continue at that rate for the rest of the term of the Long Term Plan. A similar assumption is made regarding the Special Purpose Road. The 100% financial assistance rate will continue until the end of the 2020/2021 year when the road will revert back to State Highway status for the rest of the Long Term Plan. The Long Term Plan also assumes that the present levels of service applied to the District’s roads will not be materially different from any new levels established by the One Network classifications. The consequence of these assumptions is that (before inflation) the cost of roading to the ratepayer will be fairly stable. 4. Karamea Special Purpose Road NZTA have indicated to the Buller District Council that it is proposed that the Financial assistance rate High If the Karamea Highway does not revert back to a State Karamea Special Purpose Road will lose its designation and revert from 100% may reduce Highway then the ratepayer may be required to fund a subsidy to the Buller District Council’s financial assistance rate of 66%, with a greater portion of maintenance and capital costs which three year phase-in period. could increase rates (estimated at $300,000 in 2021/22). In examining the unquantifiable risk associated with the long term maintenance of the Karamea Special Purpose Road, the financial risks associated with this proposal are considered be to beyond the financial resources of Buller District Council’s ratepayers to fund. At this stage we have assumed that the Karamea Highway revert back to State Highway status from 2021/2022.

138 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS | ASSUMPTIONS |

Assumption Description of Risk Level of Uncertainty Impact 5 One Network Roading Classification A joint initiative between the New Zealand Transport Agency and Local Financial assistance rate Medium Council will be faced with two choices: Government New Zealand has introduced a road classification system for all may reduce depending 1. Change the current level of service provided to that set roads in New Zealand. The classification system aims: on the levels of funding by NZTA. yy to deliver similar driving experience across New Zealand. agreed to be provided by NZTA. 2. Fund the difference between the current service yy to support more consistent asset management across the Country. level and that proposed by NZTA from ratepayer yy to make collaboration and prioritisation between those organisations contributions. responsible for the planning, delivery, operation and maintenance of the nation’s roading network, leading to a more efficient and safer network and improved value for money. This will introduce different levels of service across roads of different classification. Council has assumed that there will be no change in the levels of service currently provided. 6. Useful lives of significant assets: Council has made a number of assumptions about the useful life of its assets. That the lives of assets are Low If the life of the assets are materially different from those These assumptions affect the depreciation charge contained within the Plan. materially different from contained within the Plan, the asset values stated in The detail for each asset category is reflected in the Statement of Accounting those contained within the prospective balance sheet and the profit contained Policies on pages 146-152 of this document. Council’s assets depreciation the Plan in the prospective statement of financial performance rates are contained within of the Statement of Accounting Policies. would be affected. If the life was shorter than expected then Council might need to replace the asset sooner than planned and this would need to be funded. Council has a long history of managing assets and has asset management practices in place which reduce the likelihood of assets being very different to projections. 7. Significant Asset Condition: Council understanding of condition of its assets underpins the renewal That condition Medium If the asset condition is substantially worse than forecasts in the Long Term Plan (and also the significant lives of assets information is not a expectations then there is an increased risk of unexpected discussed above). Council has sufficient information about the condition of sufficiently accurate asset failure and the increased costs of repairing assets its assets to forecast their probable replacement periods. However, further representation of the would need to be funded. These costs are not in the Long more detailed information is desirable to further reduce the risk that actual actual condition of assets Term Plan and Council would need to consider how they condition varies from the assumed condition. should be funded - higher rates, use of cash reserves or debt would be options. 8. Vested Assets: Council will receive $50,000 vested assets per annum (escalated with BERL That Vested Assets may Medium Vested assets must be maintained by Council, so if growth inflation indices). Vested assets are engineering assets such as roads, sewers vary from budget. is higher than forecast Council will need to increase its and water mains paid for by developers and vested to Council in completion budget to maintain those assets. The impact of higher or of the subdivision. lower growth is not considered significant.

Buller District Council | Draft Long Term Plan 2018-2028 139 | FINANCIALS | ASSUMPTIONS |

Assumption Description of Risk Level of Uncertainty Impact 9. Return on Investments: It is assumed that the return on investments, including dividends from That return on investment Low Higher or lower returns will impact on rates as the income Council Controlled Organisations and retained earnings on subsidiaries will decreases. will need to be raised from other sources. continue at current level for Buller Recreation and WestReef Services Limited. Westport Harbour Limited was disestablished prior to this Long Term Plan. 10. Interest Rates - External Borrowings: Council has assumed an interest rate of 4-6% across the 10 years of the plan The prevailing interest rate Medium Increases in interest rates flow through to higher debt may differ significantly servicing costs and higher rates funding requirements. from those estimated. Council has mitigated these risks with a prudent fixed interest swaps programme developed within the limits of Council’s Treasury Management Policy. 11. External Borrowings - Renewability: It has been assumed that Council will be able to renew existing external loan Higher interest rates or Medium If the loan could not be renegotiated with the current facility. delay of capital projects debt providers, a change in provider could alter finance costs 12. Interest Rates - Term Deposits: Council has assumed an interest rate range of 3 to 4.5% across the 10 years of The prevailing rate Medium Decreases in term deposit interest rates would lower the plan may differ from those investment income which would ultimately lead to estimated increased General Rates 13. Rates and Rate Increases: Limits on rates and rate increases, as required by the Local Government Act That rate increases are Low Annual Plan - reality check and rates will change but this 2002, are set out in the Financial Strategy on pages 30-43. This plan assumes above the limits set by will not happen without consultation as required by the that Council will remain within these limits. Council Local Government Act 14. Disasters: It is assumed that there will be limited events during the term of this Plan, but That there is a significant Low Council has adequate insurance to cover natural disasters. that these events will not be significant. natural disaster in the However, in the event of a significant event Council will District, such as flooding, need to re-evaluate its work programme and implement earthquake or fire disaster recovery plans.

140 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS | ASSUMPTIONS |

Assumption Description of Risk Level of Uncertainty Impact 15. Climate Change: Council uses the Ministry for the Environment (MFE) guidelines set out in The potential impacts of Medium Climate change is likely to increase the magnitude “Coastal Hazards and Climate Change 2017” for estimating Sea Level Rise climate change might of some natural hazards in the medium to long (SLR). lead to increased costs term. Therefore it is important to incorporate risk for Council in both management in the design of infrastructure supporting responding to events and new developments to maintain the same level of building greater resilience service throughout the design lifetime. The design of into infrastructure infrastructure for land development and subdivision needs to provide for the potential impact of sea level rise and the increased frequency of extreme weather events. Council has budgeted for protection of infrastructure in this plan. 16. Resource Consents: It is assumed that Resource Consents held by Council will not be significantly That conditions of Low Budgets are in place for renewal of resource consents. altered and any due for renewal during the life of the Plan can be renewed Resource Consents Any increased compliance costs will be managed through accordingly. are significantly the Annual Plan process. altered and there are If Resource Consents are not renewed then Council will accordingly significant need to consider how it delivers these services. These new compliance costs costs could be significant, for example if water extraction or consents cannot be rights are not approved. renewed 17. Potential Impact of Societal Changes: Council assumes population will decline, given the decline in economic Most significant is an Medium The Plan has assumed a population decline followed activity especially in mining. There will be an aging population. The increase in the age of the by a gradual recovery. Council has allowed for further proportion of the population over 65 years is assumed to increase from 19% population, increasing development of the Town Heart Plan and District Plan to 29% over the next 25 years. demand for houses over Review to assist with the creation of a vibrant civic hub. the long term. The plan assumed that the demand for housing for the elderly is adequate and can be met through surplus rentals at modest prices. 18. External Assumptions - Government Legislation: It is assumed that there will be no material changes to existing legislation That Central Government Medium If changes in legislation require Council to provide further or additional activity or compliance requirements imposed by Central requires Council to services, or significantly increases, levels of compliance Government, which has not already been allowed for in this document. undertake further or operating costs then this will need to be offset by activities, without increases in fees and charges, and/or in increases in rates. corresponding funding It is unlikely that Government will reduce compliance or or imposes additional legislative costs incurred by Council, but if there was a compliance costs on Local reduction this would enable Council to reduce rates or Government. fees and charges.

Buller District Council | Draft Long Term Plan 2018-2028 141 | FINANCIALS | ASSUMPTIONS |

Assumption Description of Risk Level of Uncertainty Impact 19. Repayment of Loans: It has been assumed that the loan from Council to Buller Holdings Limited will Inability to service the Low Debt will be rolled over on an annual basis. not be repaid over the term of the Plan. loan 20. Water Upgrades: The drinking water standard upgrades to rural drinking water supplies is There is a risk that the Low Provision of safe, clean water may not eventuate if based on an assumption that the Ministry of Health subsidy will be available project may not proceed if a subsidy is not received. Water schemes may be to be claimed. funding is not received unaffordable for some communities. 21. Capital Projects: Capital projects are based on an assumption that they will occur when they There is a risk of deferral High This will lower capital expenditure, loans and finance have been identified in the Long Term Plan and for the costs have been of projects to later years of costs. Depreciation would be lower than rated for. identified. However, this assumption has a high level of uncertainty as the Long Term Plan. projects may cost more or less due to more or less work needing to be done and/or a project may need to be delayed. 22. One District Plan: Local Government Commission has made a preliminary decision to transfer - potential loss of local Medium Buller not having a plan that aligns or reflects the the statutory powers associated with district plan making to the regional control over key direction we wish to head council. This is subject to further community consultation after which they decisions relating to Higher costs than we currently expend on this activity may decide to proceed, do nothing or go back to another option such as district planning due to legal challenges amalgamation. The proposal is that the plan will be governed by a joint - potential legal challenge committee of elected members from all the councils with support from staff to plan across the region. This transfer is for plan making only and Buller would still require a planning team to process consents and administer the plan and would more than likely still be involved in developing the plan therefore we have maintained status quo in terms of planning resourcing

142 Buller District Council | Draft Long Term Plan 2018-2028 | FINANCIALS | ASSUMPTIONS |

Price Adjustments for Inflation The Council is required to provide a 10 Year Plan adjusted for inflation. The figures within the plan have been adjusted for price movements. The price adjustors used have been derived from those recommended to Local Government from Business and Economic Research Limited (BERL). The following adjustors have been applied at an activity level based on the nature of the input costs for that activity:

BERL Adjustors: % Per Annum Change Year ending Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 Expense Type Roading 1.020 1.022 1.022 1.023 1.024 1.024 1.025 1.026 1.027 1.028 Community Activities 1.017 1.020 1.021 1.021 1.022 1.023 1.023 1.024 1.024 1.026 Water 1.023 1.025 1.023 1.024 1.024 1.025 1.026 1.026 1.027 1.028 Energy (Local Govt Admin) 1.021 1.020 1.020 1.021 1.022 1.023 1.023 1.024 1.025 1.025 Staff 1.016 1.016 1.017 1.018 1.018 1.019 1.019 1.020 1.020 1.021 Other (Local Govt Admin) 1.021 1.020 1.020 1.021 1.022 1.023 1.023 1.024 1.025 1.025 Earthmoving 1.020 1.023 1.024 1.024 1.025 1.026 1.027 1.028 1.029 1.031 Pipelines 1.022 1.027 1.025 1.024 1.024 1.024 1.024 1.024 1.024 1.024 Private Sector Wages 1.019 1.019 1.018 1.016 1.017 1.018 1.018 1.019 1.019 1.020 Average 1.020 1.021 1.021 1.021 1.022 1.023 1.023 1.024 1.025 1.026

Source: Business and Economic Research Limited

BERL Adjustors: Cumulative % change from June 2017 Year ending Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 Expense Type Roading 1.000 1.022 1.044 1.069 1.094 1.120 1.148 1.178 1.210 1.244 Community Activities 1.000 1.020 1.041 1.063 1.087 1.112 1.137 1.165 1.192 1.223 Water 1.000 1.025 1.049 1.074 1.100 1.127 1.156 1.186 1.218 1.253 Energy (Local Govt Admin) 1.000 1.020 1.040 1.062 1.086 1.111 1.136 1.163 1.192 1.222 Staff 1.000 1.016 1.033 1.052 1.071 1.091 1.112 1.134 1.157 1.181 Other (Local Govt Admin) 1.000 1.020 1.040 1.062 1.086 1.111 1.136 1.163 1.192 1.222 Earthmoving 1.000 1.023 1.048 1.073 1.100 1.128 1.159 1.191 1.226 1.264 Pipelines 1.000 1.027 1.053 1.078 1.104 1.130 1.157 1.185 1.214 1.243 Private Sector Wages 1.000 1.019 1.037 1.054 1.072 1.091 1.111 1.132 1.153 1.176

Source: Business and Economic Research Limited

Buller District Council | Draft Long Term Plan 2018-2028 143 | FINANCIALS | FORECAST RESERVE FUNDS | FORECAST RESERVE FUNDS

Reserve Activity that the Reserve Purpose of Reserve Projected Transfer to Transfer Balance relates to: Opening Reserves from 2027/2028 Balance Reserves 2018/2019 $000 $000 $000 $000 Proceeds from general ratepayer to fund various infrastructure where there was no Amenities Reserve Various not specified 365 0 0 365 government subsidy available Community Funds from depreciation used for the upgrade and construction of replacement various not specified 3,297 66,126 64,683 4,740 Development - Other Council assets Reserve Contributions Regulatory Proceeds from subdivision for public reserve upgrades 1,375 379 868 886 Miles Bequest Property Funds set aside for the purchase of engraved seats at the Westport cemetary 0 0 0 0 Powell Bequest Property Funds bequested to Council for the purchase of public seating in Westport 0 0 0 0 Mayor's Relief Fund Democracy Funds for providing grants for relief at the discretion of the Mayor 5 0 0 5 Boiler Replacement Fund Property Funds set aside to go toward replacement of boiler at Brougham Street offices 7 0 0 7 Development Proceeds form commercial and industrial development to provide for social and Regulatory 118 0 0 118 Contributions recreation need of the area Sale of Gifted Property various not specified Funds set aside from the sale of property gifted to Council 11 0 0 11 Infrastructure Regulatory Funds set aside for upgrading infrastructure where appropriate 10 0 0 10 Contributions Total Reserves Only 5,187 66,505 65,550 6,142 Separates all funding and expenditure and surpluses or deficits for each solid Karamea Solid Waste Solid Waste 32 687 561 157 waste activity Separates all funding and expenditure and surpluses or deficits for each solid Maruia Solid Waste Solid Waste 8 124 129 3 waste activity Contracted Refuse/ Separates all funding and expenditure and surpluses or deficits for each solid Solid Waste 96 7,171 7,235 31 Recycling Operations waste activity Separates all funding and expenditure and surpluses or deficits for each water Westport Water Water (614) 24,483 24,260 (391) scheme Separates all funding and expenditure and surpluses or deficits for each water Reefton Water Water (85) 4,167 4,127 (44) scheme

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Reserve Activity that the Reserve Purpose of Reserve Projected Transfer to Transfer Balance relates to: Opening Reserves from 2027/2028 Balance Reserves 2018/2019 $000 $000 $000 $000 Separates all funding and expenditure and surpluses or deficits for each water Little Wanganui Water Water 35 188 151 72 scheme Separates all funding and expenditure and surpluses or deficits for each water Mokihinui Water Water 45 174 129 91 scheme Separates all funding and expenditure and surpluses or deficits for each water Ngakawau Hector Water Water 307 716 477 546 scheme Separates all funding and expenditure and surpluses or deficits for each water Waimangaroa Water Water 13 1,066 843 236 scheme Separates all funding and expenditure and surpluses or deficits for each water Cape Foulwind Water Water 544 1,110 815 839 scheme Separates all funding and expenditure and surpluses or deficits for each water Punakaiki Water Water (105) 714 1,001 (392) scheme Separates all funding and expenditure and surpluses or deficits for each water Inangahua Water Water (53) 156 179 (76) scheme Separates all funding and expenditure and surpluses or deficits for each water South Granity Water Water 12 65 29 48 scheme Separates all funding and expenditure and surpluses or deficits for each water Karamea Water Water 0 0 0 0 scheme Separates all funding and expenditure and surpluses or deficits for each sewerage Westport Sewerage Wastewater/Sewerage (736) 21,514 21,134 (356) scheme Separates all funding and expenditure and surpluses or deficits for each sewerage Reefton Sewerage Wastewater/Sewerage 414 3,252 3,707 (41) scheme Separates all funding and expenditure and surpluses or deficits for each sewerage Little Wanganui Sewerage Wastewater/Sewerage 33 397 421 9 scheme Separates all funding and expenditure and surpluses or deficits for the Punakaiki Punakaiki Camp Property (231) 442 323 (112) Camp Activity Separates all funding and expenditure and surpluses or deficits for Pensioner Pensioner Housing Property (18) 3,669 3,535 116 Housing Separates all funding and expenditure and surpluses or deficits for the dog control Dog Control Regulatory (240) 2,006 1,855 (89) activity Total Separate Balances Only (543) 72,100 70,913 644 Total Reserves & Separate Balances 4,644 138,605 136,463 6,786

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Statement of Responsibility & Cautionary Note Statement of Compliance The purchase method of consolidation has been used to The Draft 2018-2028 Long Term Plan was authorised for issue The prospective financial statements of Buller District Council prepare the consolidated financial statements, which involves by Council on 17 April 2018. have been prepared in accordance with the requirements of adding together like items of assets, liabilities, equity, revenue the Local Government Act 2002: Part 6, Section 93 and Part and expenses on a line by line basis. All significant intra-group The purpose of this Long Term Plan is to consult with the 1 of schedule 10, which includes the requirement to comply balances, transactions, revenue and expenses are eliminated community on the planned activities and expenditure of with New Zealand Generally Accepted Accounting Practice on consolidation. Council over the next 10 years. The use of this information for (NZ GAAP). The prospective financial statements have been Buller District Council’s investment in its subsidiaries is carried other purposes other than for which it was prepared may not prepared in accordance with Tier 1 PBE accounting standards. be appropriate. at cost in the Buller District Council’s own “parent entity” These prospective financial statements are presented and financial statements. The Council is responsible for the prospective financial comply with PBE accounting standards. statements presented, including the appropriateness of the The prospective financial statements only include prospectives underlying assumptions and related disclosures. Actual Presentation currency and Rounding for the parent entity (Buller District Council). financial results achieved for the period covered may vary from The prospective financial statements are presented in New Associates the information presented, and the variations may be material. Zealand dollars and all values are rounded to the nearest An associate is an entity over which Buller District Council has The prospective financial statements comply with Tier 1 Public thousand dollars ($1,000) unless stated. The functional significant influence and that is neither a subsidiary nor an Benefit Entity (PBE) Accounting Standards (including PBE currency of Buller District Council is New Zealand dollars. interest in a joint venture. FRS 42 – Prospective Financial Statements). The prospective financial statements have been prepared using the best Subsidiaries Buller District Council accounts for an investment in an information available at the time they were prepared. Subsidiaries are those entities where Buller District Council has associate using the equity method. The investment in an the capacity to control their financing and operating policies associate is initially recognised at cost and the carrying amount Reporting Entity so as to obtain benefits from the activities of the entity. This is increased or decreased to recognise the share of the surplus The Buller District Council is a territorial local authority power exists where Buller District Council controls the majority or deficit of the associate. governed by the Local Government Act 2002. voting power of the governing body or where such policies The Council has two associates, Tourism West Coast and have been irreversibly predetermined by Buller District Council. The Buller District Council provides local infrastructure, local Denniston Heritage Trust. There is no equity investment public services and provides regulatory functions to the The subsidiaries of Buller District Council are Buller Holdings and therefore no results are equity accounted for in these community. The Council does not operate to make a financial Limited, WestReef Services Limited, Buller Recreation Limited prospective financial statements. and the Buller Health Trust. return. Accordingly, Buller District Council has designated itself Joint Ventures as a Public Benefit Entity for financial reporting purposes. Buller District Council measures the cost of a business A joint venture is a contractual arrangement whereby two or The prospective financial statements of Buller District Council combination as the aggregate of the fair values at the date more parties undertake an economic activity that is subject to are for the 10-years ended 30 June 2028. of exchange, of assets given, liabilities incurred or assumed, joint control. in exchange for control of the subsidiary plus any costs Basis of Preparation attributable to the business combination. Buller District Council has a 50/50 joint venture interest in the Westport Airport Authority with Ministry of Transport. The prospective financial statements have been prepared Any excess of the cost of the business combination over Buller on a going concern basis and the accounting policies have District Council’s interest in the net fair value of the identifiable Buller District Council recognises in its prospective financial been applied consistently throughout the period there and assets, liabilities and contingent liabilities, is recognised as statements the assets it controls, the liability and expenses it have been no changes in accounting policies during the goodwill. If Buller District Council’s interest in the net fair value incurs, and the share of revenue that it earns from the joint financial year. The financial statements have been prepared on of the identifiable assets, liabilities and contingent liabilities venture. a historical cost basis, modified by the revaluation of certain exceeds the cost of the business combination, the difference infrastructural assets, investment property and financial will be recognised immediately in the surplus or deficit. instruments.

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Revenue yy Rental revenue is recognised on a straight line basis. Deferred tax is recognised on taxable temporary differences Revenue is measured at the fair value of consideration yy Interest revenue is recognised using the effective interest arising from investments in subsidiaries and associates, and received. Revenue from the rendering of services is recognised method. interests in joint ventures, except where the Council can by the reference to the stage of completion of the transaction yy Distributions are recognised when the right to receive the control the reversal of the temporary difference and it is at balance date based on the actual service provided as a payment has been established. probable that the temporary difference will not reverse in the foreseeable future. percentage of the total services to be provided. Borrowing Costs Deferred tax is calculated at the tax rates that are expected Rates Revenue Borrowing costs are recognised as an expense in the period in to apply in the period when the liability is settled or the which they are incurred. The following policies for rates have been applied: asset is realised, using tax rates that have been enacted or substantively enacted by balance date. yy General rates, targeted rates (excluding water-by-meter), Grant Expenditure and uniform annual general charges are recognised at Non-discretionary grants are those grants that are awarded Current tax and deferred tax is charged or credited against the the start of the financial year to which the rates resolution if the grant application meets the specified criteria and are surplus or deficit for the period, except when it relates to items relates. They are recognised at the amounts due. The Council recognised as expenditure at the time when such application charged or credited directly to equity, in which case the tax is considers that the effect of payment of rates by instalments has been received. dealt with in equity. is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue. Discretionary grants are those grants that Buller District Council Leases has no obligation to award and are recognised as expenditure yy Rates arising from late payment penalties are recognised as when a successful applicant has been notified of the Buller Finance Leases revenue when rates become overdue. District Council’s decision. A finance lease is a lease that transfers to the lessee yy Revenue from water-by-meter rates is recognised on an substantially all the risks and rewards incidental to ownership accrual basis based on usage. Unbilled usage, as a result of Income Tax of an asset, whether or not title is eventually transferred. unread meters at year end, is accrued on an average usage Income tax expense in relation to the surplus or deficit for the basis. At the commencement of the lease term, Buller District period comprises current tax and deferred tax. yy Rates remissions are recognised as a reduction of rates Council recognises finance leases as assets and liabilities in revenue when the Council has received an application that Current tax is the amount of income tax payable based on the Prospective Statement of Financial Position at the lower satisfies its rates remission policy. the taxable profit for the current year, plus any adjustments of the fair value of the leased item or the present value of the minimum lease payments. yy Rates collected on behalf of the West Coast Regional Council to income tax payable in respect of prior years. Current tax is (WCRC) are not recognised in the prospective financial calculated using rates that have been enacted or substantively The amount recognised as an asset is depreciated over its statements, as the Council is acting as an agent for the enacted by balance date. useful life. If there is no certainty as to whether Buller District WCRC. Deferred tax is the amount of income tax payable or Council will obtain ownership at the end of the lease term, recoverable in future periods in respect of temporary the asset is fully depreciated over the lease term or useful life, Other Revenue differences and unused tax losses. Temporary differences whichever is the shortest. Buller District Council receives Government Grants from the are differences between the carrying amount of assets and New Zealand Transport Authority, which subsidises part of liabilities in the financial statements and the corresponding tax Operating leases Buller District Council’s costs in maintaining the local roading bases used in the computation of taxable profit. An operating lease is a lease that does not transfer substantially infrastructure. Grants are received from the Ministry of Health all the risks and rewards incidental to ownership of the asset. for eligible water schemes. The subsidies are recognised as Deferred tax liabilities are generally recognised for all taxable Lease payments under an operating lease are recognised as an revenue upon entitlement as conditions pertaining to eligible temporary differences. Deferred tax assets are recognised expense on a straight line basis over the lease term. expenditure are fulfilled. to the extent that it is probable that taxable profits will be available against which the deductible temporary differences Cash and Cash Equivalents Sales of goods are recognised when a product is sold to a or tax losses can be utilised. Cash and cash equivalents includes cash on hand, deposits customer. Sales are usually in cash. The recorded revenue is the held on call with banks, other short term highly liquid gross amount of the sale. Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill, or from the initial investments with original maturities of three months or less, Where a physical asset is acquired for nil or nominal recognition of an asset and liability in a transaction that is not and bank overdrafts. consideration, the fair value of the asset received is recognised a business combination, and at the time of the transaction, Bank overdrafts are shown as current liabilities in the as revenue. Assets vested in Buller District Council are affects neither accounting profit nor taxable profit. Prospective Statement of Financial Position. recognised as revenue when control over the asset is obtained.

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Trade and other receivables Any impairment losses for write-downs of non-current assets Financial Assets at Fair Value through Surplus or Deficit Trade and other receivables are initially measured at fair held for sale are recognised in the surplus or deficit. This category has two sub-categories: value and subsequently measured at amortised cost using Any increases in fair value (less costs to sell) are recognised up yy Financial assets held for trading the effective interest rate method, less any provision for to the level of any impairment losses that have previously been impairment. yy Those designated at fair value through surplus or deficit at recognised. inception. Loans, including loans to community organisations made by Non-current assets (including those that are part of a disposal A financial asset is classified in this category if acquired Buller District Council at nil, or below market interest rates, are group) are not depreciated or amortised while they are principally for the purpose of selling in the short term or if so initially recognised at the present value of their expected future classified as held for sale. designated by management. cash flows, discounted at the current market rate of return for a similar asset / investment. They are subsequently measured Financial Assets Derivatives are also categorised as held for trading unless they at amortised cost using the effective interest method. The are designated as hedges. Assets in this category are classified Buller District Council classifies its financial assets into the difference between the face value and the present value of as current assets if they are either held for trading or are following four categories: the expected future cash flows of the loan is recognised in the expected to be realised within 12 months of the balance sheet surplus or deficit. yy Financial assets at fair value through surplus or deficit; date. yy Held-to-maturity investments; A provision for impairment of receivables is established After initial recognition they are measured at their fair values. when there is objective evidence that Buller District Council yy Loans and receivables; and Gains or losses on re-measurement are recognised in the will not be able to collect all the amounts due according yy Fair value through other comprehensive revenue. surplus or deficit. to the original terms of receivables. Significant financial The classification depends on the purpose for which the Currently Buller District Council recognises derivative financial difficulties of the debtor, probability that the debtor will investments were acquired. Management determines the instruments in this category. enter into bankruptcy, receivership or liquidation and classification of its investments at initial recognition and re- default in payments are indicators that the asset is impaired. evaluates this designation at every reporting date. Held to Maturity Investments The amount of the provision is the difference between the Financial assets and liabilities are initially measured at fair Held to maturity investments are assets with fixed or assets carrying amount and the present value of estimated value plus transaction costs unless they are carried at fair value determinable payments and fixed maturities that Buller future cash flows, discounted using the effective interest through surplus or deficit in which case the transaction costs District Council has the positive intention and ability to hold to method. are recognised in surplus or deficit. maturity. Inventories Purchases and sales of investments are recognised on trade After initial recognition they are measured at amortised cost Inventories held for distribution or consumption in the date, the date on which Buller District Council commits to using the effective interest method. Gains and losses when provision of services that are not supplied on a commercial purchase or sell the asset. Financial assets are de-recognised the asset is impaired or de-recognised are recognised in the basis are measured at the lower of cost and current when the rights to receive cash flows from the financial assets surplus or deficit. replacement cost. have expired or have been transferred, Buller District Council Currently Buller District Council does not hold any financial having transferred substantially all the risks and rewards of assets in this category. Inventories held for use in the production of goods and ownership. services on a commercial basis are valued at the lower of cost Loans and Receivables and net realisable value. The cost of purchased inventory is The fair value of financial instruments traded in active markets determined using the FIFO method. is based on quoted market prices at the balance sheet date. These are non-derivative financial assets with fixed or The quoted market price used is the current bid price. determinable payments that are not quoted in an active The write down from cost to current replacement cost or net market. realisable value is recognised in the surplus or deficit. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. After initial recognition they are measured at amortised cost Non-Current Assets Held for Sale Buller District Council uses a variety of methods and makes using the effective interest method. Gains and losses when Non-current assets held for sale are classified as held for sale assumptions that are based on market conditions existing at the asset is impaired or de-recognised are recognised in the if their carrying amount will be recovered principally through balance date. Quoted market prices or dealer quotes for similar surplus or deficit. Loans and receivables are classified as “trade the sale transaction rather than through continuing use. Non- instruments are used for long-term debt instruments held. and receivables” and short and long term investments in the current assets held for sale are measured at the lower of their Other techniques, such as estimated discounted cash flows, Prospective Statement of Financial Position. are used to determine fair value for the remaining financial carrying amount and fair value less costs to sell. Investments in this category include loans to subsidiaries and instruments. other companies and term deposits.

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Fair Value through Other Comprehensive Revenue & bankruptcy, receivership or liquidation and default in payment Buller Health Trust Assets – These include plant and equipment Expenses is considered to be objective evidence of impairment. and furniture and fittings. Financial assets at fair value through other prospective Property, plant and equipment is shown at cost or revaluation, comprehensive revenue and expenses are those that are less accumulated depreciation and impairment losses. designated into this category at initial recognition or are not Derivative Financial Instruments classified in any of the other categories above. Buller District Council uses derivative financial instruments to Additions This category encompasses: hedge exposure to interest rate risks arising from financing The cost of an item of property, plant and equipment is activities. In accordance with its treasury policy, Buller District recognised as an asset if, and only if, it is probable that future yy Investments that Buller District Council intends to hold long- Council does not hold or issue derivative financial instruments economic benefits or service potential associated with the item term but which may be realised before maturity. for trading purposes. However derivatives that do not qualify will flow to Buller District Council and the cost of the item can yy Shareholdings that Buller District Council holds for strategic for hedge accounting are accounted for as trading instruments. be reliably measured. purposes. Buller District Council’s investments in its subsidiary and associate companies are not included in this Derivatives are initially recognised at fair value on the date a In most instances, an item of property, plant and equipment is category as they are held at cost whereas this category is to derivative contract is entered into and are subsequently re- recognised at its cost. Where an asset is acquired at no cost, or be measured at fair value. measured at their fair value at each balance date. for a nominal cost, it is recognised at fair value as at the date of acquisition. After initial recognition these investments are measured at The gain or loss on re-measurement to fair value is recognised their fair value. immediately in surplus or deficit. However, where derivatives Disposals qualify for hedge accounting, recognition of any resultant gain Gains and losses on disposal are determined by comparing Gains and losses are recognised directly in other prospective or loss depends on the nature of the item being hedged. comprehensive revenue and expenses except for impairment the proceeds with the carrying amount of the asset. Gains losses, which are recognised in the surplus or deficit. The fair value of interest rate swaps is the estimated amount and losses on disposal are included in the surplus or deficit. that Council would receive or pay to terminate the swap at the When revalued assets are sold, the amounts included in asset Investments in this category include shares in other companies. balance sheet date, taking into account current interest rates revaluation reserves in respect of those assets are transferred Impairment of Financial Assets and the current creditworthiness of the swap counterparties. to accumulated funds. The fair value of forward contracts is their quoted market At each balance sheet date Buller District Council assesses price at the balance sheet date, being the present value of the Subsequent Costs whether there is any objective evidence that a financial asset or quoted forward price. Costs incurred subsequent to initial acquisition are capitalised group of financial assets is impaired. Any impairment losses are only when it is probable that future economic benefits or recognised in the surplus or deficit. Buller District Council has not adopted hedge accounting to service potential associated with the item will flow to Buller account for its derivative financial instruments. Any cumulative losses previously recognised in equity will be District Council and the cost of the item can be measured removed from equity and shown in the surplus or deficit. Property, Plant and Equipment reliably. - Term deposits, loans to subsidiaries and associates, and Property, plant and equipment consist of: Depreciation community loans (loans and receivables) Council Assets – These include land, buildings, plant and Depreciation is provided on a straight line basis on all property, Impairment is established when there is evidence that the machinery, motor vehicles, office equipment, library books and plant and equipment, other than land or erosion protection Council and group will not be able to collect amounts due the Airport runway. assets, at rates that will write off the cost (or valuation) of the according to the original terms of the receivable. Significant assets to their estimated residual values over their useful lives. Infrastructure Assets – These include roads, footpaths, traffic financial difficulties of the debtor, probability that the debtor facilities, street lights, bridges, culverts, water reticulation, The useful lives and associated depreciation rates of major will enter into bankruptcy, receivership or liquidation and storm water reticulation, sewerage reticulation and landfill. classes of assets have been estimated as follows: default in payments are indicators that the asset is impaired. Harbour Assets – These include land, buildings, wharves, plant - Listed and unlisted shares, listed bonds (fair value and machinery, office equipment, motor vehicles and harbour through other comprehensive revenue and expense) vessels. For shares, a significant or prolonged decline in the fair value of WestReef Assets – These include leasehold improvements, the shares below its cost is considered to be objective evidence plant and equipment, office equipment, office furniture, fittings of impairment. For listed bonds, significant financial difficulties and computer equipment. of the debtor, probability that the debtor will enter into

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Assets Infrastructure Assets Depreciation Useful Life Revaluation Council Assets Depreciation Useful Life Rate (%) (Years) Those asset classes that are revalued are valued on a basis described below. All other asset classes are carried at Rate (%) (Years) Street lights 3.33% 30 depreciated historical cost. The carrying values of revalued Motor vehicles 15% 7 Bridges 1% to 2% 50 - 100 items are reviewed at each balance date to ensure that those Office Equipment 10% to 50% 2 - 10 Culverts 1.11% to 80 - 90 values are not materially different to fair value. Plant and machinery 3.33% to 15% 7 - 30 1.25% Council Land - The Airport land was revalued to fair value as determined by market based evidence by an independent Buildings 1% to 10% 10 - 100 Water Reticulation: valuer. The most recent valuation was performed by Quotable Library Books 10% 10 Drains Not Value with an effective date as at 30 June 2005. Council land is depreciated Airport runway: recognised at deemed cost. Kerb and Channelling 1.25% 80 Basecourse 1.3% 75 Harbour Land - The Harbour land was revalued to fair value Pipes 1.10% to 25 - 100 as determined by market based evidence by an independent Seal 5% 20 4.10% valuer. The most recent valuation was performed by Quotable Valves, hydrants 1.67% 60 Value with an effective date as at 30 June 2005. Harbour land is Westport Harbour Assets Depreciation Useful Life recognised at deemed cost. Intake structures 1.11% to 2% 50 - 90 Rate (%) (Years) Infrastructural Assets – The infrastructural assets are valued Wharves 1.67% 60 Reservoirs 1.25% 80 on a two yearly valuation cycle at fair value determined on Buildings 2.5% 40 Resource Consents 2.85% 35 a depreciated replacement cost basis by an independent Pump stations 2% to 6.67% 15 - 50 valuer. At balance date Buller District Council assesses the Plant and Machinery 3.3% to 10% 10 - 30 carrying values of its infrastructural assets to ensure that they Office Equipment 20% to 33.5% 3 - 5 Treatment Equipment 2% to 6.67% 15 – 50 do not differ materially from the assets fair value. The most Tunnels 0.7% to 4% 25 - 150 recent valuation was performed by GHD Limited and the Motor Vehicles 10% to 20% 5 - 10 valuation is effective as at 1 July 2017. All infrastructural asset Harbour Vessels 5% to 6.7% 15 - 20 Stormwater Reticulation: classes carried at valuation were valued. The total value of Pipes 1% to 1.54% 65 - 100 infrastructural assets valued by GHD Limited on 1 July 2017 was $281,609,862. Sewerage Reticulation: Infrastructure Assets Depreciation Useful Life Pipes 1% to 1.42% 70 - 100 Accounting for Revaluation Rate (%) (Years) Treatment Plants 1.11% to 15 - 90 Buller District Council accounts for revaluations of property, Roads: 6.67% plant and equipment on a class of assets basis. Formation Not Pump Stations 1.11% to 15 - 90 The results of revaluing are credited or debited to an asset depreciated 6.67% revaluation reserve. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the Basecourse - unsealed roads Not Manholes 1.11% 90 depreciated surplus or deficit. Any subsequent increase on revaluation that Capital work in progress is not depreciated. The total cost of off-sets a previous decrease in value recognised in the surplus Basecourse - sealed roads 1% to 2% 50 - 100 the project is transferred to Property Plant and Equipment on or deficit, will be recognised first in the surplus or deficit up Seal 4% to 12.5% 8 - 25 its completion and then depreciated. to the amount previously expensed, and then credited to the revaluation reserve. Footpaths: The residual value and useful life of an asset is reviewed and Basecourse Not adjusted if applicable, at each financial year end. Intangible Assets depreciated Software acquisition and development Pavement 1.25% to 10% 10 - 80 Acquired computer software licenses are capitalised on the Traffic facilities 5% to 10% 10 - 20 basis of the costs incurred to acquire and bring to use the specific software.

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Costs that are directly associated with the development of Investment property is measured initially at cost, including Value in use for cash generating assets software for internal use are recognised as an intangible asset. transaction costs. Cash-generating assets are those assets that are held with the Direct costs include the software development employee costs After initial recognition, Buller District Council measures all primary objective of generating a commercial return. and an appropriate portion of relevant overheads. investment property at fair value as determined annually by an The value in use for cash-generating assets and cash- Staff training costs are recognised in the surplus or deficit when independent valuer. The most recent valuation of investment generating units is the present value of expected future incurred. Costs associated with maintaining computer software property was carried out by Quotable Valuations with an cashflows. are recognised as an expense when incurred. effective date as at 30 June 2017. Costs associated with development and maintenance of the Gains or losses arising from a change in the fair value of Employee Entitlements Council’s website are recognised as an expense when incurred. investment property are recognised in the surplus or deficit. Short Term Benefits Amortisation Impairment of Non-Financial Assets Employee benefits that Buller District Council expects to be settled within 12 months of balance date are measured at The carrying value of an intangible asset with a finite life Property, plant and equipment assets, measured at fair value nominal values based on accrued entitlements at current rates is amortised on a straight-line basis over its useful life. are not required to be reviewed and tested for impairment. of pay. Amortisation begins when the asset is available for use The carrying values of revalued assets are assessed annually and ceases at the date that the asset is derecognised. The to ensure that they do not differ materially from the assets’ fair These include salaries and wages accrued up to balance date, amortisation charge for each period is recognised in the values. If there is a material difference, then the asset class is annual leave earned to, but not yet taken at balance date, surplus or deficit. revalued. retiring and long service leave entitlements expected to be settled within 12 months, and sick leave. The useful lives and associated amortisation rates of major Property, plant and equipment, and intangible assets classes of intangible assets have been estimated as follows: subsequently measured at cost that have a finite useful life Buller District Council recognises a liability for sick leave to the Computer software 3 to 5 years 20 to 33.3% are reviewed for impairment whenever events or changes in extent that absences in the coming year are expected to be circumstances indicate that the carrying value may not be greater than the sick leave entitlements earned in the coming Goodwill recoverable. year. The amount is calculated based on the unused sick leave Goodwill is initially measured at its cost, being the excess of entitlement that can be carried forward at balance date, to the the cost of the acquisition over Buller District Council’s interest Intangible assets subsequently measured at cost that have extent that Buller District Council anticipates it will be used by in the net fair value of the identifiable assets, liabilities and an indefinite useful life, and goodwill, are not subject to staff to cover future absences. amortisation and are tested annually for impairment. contingent liabilities. Goodwill on acquisition of subsidiaries is Buller District Council recognises a liability and expense for included in intangible assets by applying the purchase method. An impairment loss is recognised for the amount by which the bonuses where contractually obliged or where there is a past Goodwill arising in business combinations is not amortised. asset’s carrying amount exceeds its recoverable amount. The practice that has created a constructive obligation. Instead, goodwill is tested for impairment annually. After initial recoverable amount is the higher of an asset’s fair value less recognition, Buller District Council measures goodwill at cost costs to sell and value in use. Long Term Benefits less any accumulated impairment losses. An impairment loss If an asset’s carrying amount exceeds its recoverable amount, - Long Service Leave and Retirement Leave recognised for goodwill will not be reversed in any subsequent the asset is regarded as impaired and the carrying amount is Entitlements that are payable beyond 12 months, such as long period. written-down to the recoverable amount. The total impairment service leave and retirement gratuities, have been calculated Goodwill is allocated to cash generating units for the purpose loss is recognised in the surplus or deficit. The reversal of an on an actuarial basis. The calculations are based on: impairment loss is recognised in the surplus or deficit. of impairment testing. The allocation is made to those cash Likely future entitlements accruing to staff, based on years of generating units or groups of cash generating units that are Value in use for non-cash generating assets service, years to entitlement and the likelihood that staff will expected to benefit from the business combination, in which reach the point of entitlement; and the goodwill arose. Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. The present value of the estimated future cashflows. A discount Investment Property For non-cash generating assets, value in use is determined rate of 4.5%, and a inflation factor of 1.9% were used. The Properties leased to third parties under operating leases are using an approach based on either a depreciated replacement discount rate is based on the weighted average of Government classified as investment property unless the property is held to cost approach, restoration cost approach, or a service units interest rates for stock with terms to maturity similar to those meet service delivery objectives, rather than to earn rentals or approach. The most appropriate approach used to measure of the relevant liabilities. The inflation factor is based on the for capital appreciation. value in use depends on the nature of the impairment and expected long term increase in remuneration for employees. availability of information.

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Superannuation Schemes Financial Position. estimates and uncertainties surrounding the landfill aftercare provision. - Defined Contributions Schemes The net GST paid to, or received from the IRD, including the GST Obligations for contributions to defined contribution relating to investing and financing activities, is classified as an Infrastructural Assets operating cash flow in the Prospective Statement of Cash Flows. superannuation schemes are recognised as an expense in the There are a number of assumptions and estimates used surplus or deficit as incurred. Commitments and contingencies are disclosed exclusive of when performing valuations over infrastructural assets which GST. include: Provisions yy The physical deterioration and condition of an asset, eg, Buller District Council recognises a provision for future Cost Allocation Council could be carrying an asset at an amount that does expenditure of uncertain amount or timing when there is a Buller District Council has derived the cost of service for each not reflect its actual condition. This is particularly so for present obligation (either legal or constructive) as a result of significant activity using the cost allocation system outlined those assets which are not visible such as stormwater, a past event, it is probable that expenditures will be required below. wastewater and water supply pipes that are underground. to settle the obligation and a reliable estimate can be made of The risk is minimised by Council performing a combination the amount of the obligation. Provisions are not recognised for Direct costs are those costs directly attributable to a significant of physical inspections and condition modelling future operating losses. activity. Indirect costs are those costs, which cannot be identified in an economically feasible manner, with a specific assessments of underground assets; Provisions are measured at the present value of the significant activity. yy Estimating any obsolescence or surplus capacity of an asset; expenditures expected to be required to settle the obligation and Direct costs are charged directly to significant activities. using a pre-tax discount rate that reflects current market yy Estimates are made when determining the remaining Indirect costs are charged to significant activities using an assessments of the time value of money and the risks specific useful lives over which the asset will be depreciated. These appropriate cost driver. to the obligation. The increase in the provision due to the estimates can be impacted by local conditions, eg, weather passage of time is recognised as an interest expense. Critical Accounting Estimates and Assumptions patterns and traffic growth. If useful lives do not reflect the actual consumption of the benefits of the asset, then Borrowings In preparing these prospective financial statements Buller Council could be over or under estimating the annual Borrowings are initially recognised at their fair value. After District Council has made estimates and assumptions depreciation charge recognised as an expense in the surplus initial recognition, all borrowings are measured at amortised concerning the future. These estimates and assumptions or deficit. To minimize the risk, Council’s infrastructural asset cost using the effective interest method. may differ from the subsequent actual results. Estimates useful lives have been determined with reference to the NZ and judgments are continually evaluated and are based on Infrastructure Asset Valuation and Depreciation Guidelines Equity historical experience and other factors, including expectations published by the National Asset Management Steering Equity is the community’s interest in Buller District Council and or future events that are believed to be reasonable under the Group, and have been adjusted for local conditions based is measured as the difference between total assets and total circumstances. on past experience. Asset inspections, deterioration and liabilities. Equity is disaggregated and classified into a number Classification of Property condition modelling are also carried out regularly as part of of reserves. Council’s Asset management planning activities, which gives The Council owns a number of properties held to provide Council further assurance over its useful life estimates. The components of equity are: housing to pensioners. The receipt of market-based rental yy Retained earnings; from these properties is incidental to holding them. The Experienced independent valuers prepare Council’s infrastructural asset revaluations. The last valuation was yy Restricted reserves; and properties are held for service delivery objectives as part of the prepared by GHD Limited as at 1 July 2017. yy Asset revaluation reserve. Council’s social housing policy. The properties are therefore accounted for as property, plant and equipment rather than as Goods and Services Tax (GST) investment property. All items in the prospective financial statements are stated The estimates and assumptions that form a significant risk exclusive of GST, except for receivables and payables, which are of causing a material adjustment to the carrying amount of stated on a GST inclusive basis. Where GST is not recoverable assets and liabilities within the next financial year are discussed as input tax then it is recognised as part of the related asset or below. expense. The net amount of GST recoverable from, or payable to, Landfill Aftercare Provision the Inland Revenue Department (IRD) is included as part The Landfill Aftercare Provision Note (if applicable) discloses an of receivables or payables in the Prospective Statement of analysis of the exposure of Buller District Council in relation to

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INFRASTRUCTURE STRATEGY

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This is Buller District Council’s second Infrastructure Strategy. It has been prepared from Councils 2018 suite of Asset Management Plans and the REPLACEMENT VALUE - INFRASTRUCTURE ASSETS Long Term Plan of which it forms part of. InfrastructureInfrastructure valuation (2017:Valuation $millions) (2017 $Millions) The issues and topics discussed in the Infrastructure Strategy reflect the current legislative environment and the communities’ priorities across the district. 61

It covers core infrastructure including roads, water supplies, sewage treatment and disposal, and Water stormwater. 50 The Infrastructure Strategy includes financial forecasts which are estimates. The reliability of Sewerage those forecasts decreases beyond ten years and out to the thirty years that this strategy covers. Stormwater 22 WHAT ARE THE GOALS OF THE INFRASTRUCTURE STRATEGY? Roads and footpaths The role of infrastructure is to support, promote and achieve the Council’s Community 305 (includes SPR) Outcomes. The core of our strategy is: 1. To provide the best range of services that are affordable for the community 2. To focus on efficient and effective delivery of services STRATEGY LAYOUT 3. To seek out savings while maintaining the assets in a sustainable manner. The Strategy Document sections and corresponding LGA Amendment Bill sections are tabled below: WHAT DOES OUR INFRASTRUCTURE LOOK LIKE? Table 2.1: Strategy Layout Buller District Council manages $378.9m of infrastructure assets. Asset Description Replacement Value % of total Strategy Section LGA 2002 as amended (Section 101B) Water Water extraction, treatment and $60.95m 14% distribution. Identifies the district and provides context 2 (a) Identifies the Core infrastructure included in this strategy 2(a) and 6 10 schemes Discusses the significant infrastructure issues and the associated 2(a) & (b) Sewerage Wastewater collection, treatment $49.73m 11% assumptions and discharge Illustrates the linkage between strategic documents 2 Stormwater Stormwater collection and $21.95m 5% discharge Documents the strategic statements that will guide decision- 2(b) making for the next 30 years Roads & footpaths Roads (arterial, collectors, local; $304.81m 70% curbs and gutters), bridges, Identifies the response options for the significant issues and 2(b); 3(a) to (e) & 4(a) footpaths documents benefits, cost, when and funding source TOTAL $437.44m 100% Identifies the costs associated with the actions proposed 4(a) to (c)

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CORE INFRASTRUCTURE OTHER ACTIVITIES The Local Government Act 2002 Amendment Bill Section 101B – Infrastructure Strategy Council has elected to develop this Infrastructure Strategy to cover Core Community states: Infrastructure as required by the Local Government Act: (1) A local authority must prepare and adopt, as part of its long term plan, an infrastructure Water strategy for a period of at least 30 consecutive financial years Sewerage and; Stormwater (6) In this section, infrastructure assets includes- Roads and footpaths (a) existing or proposed assets to be used to provide services by or on behalf of the local This infrastructure strategy addresses roads, water supplies, sewage treatment and disposal, authority in relation to the following groups of activities: and stormwater. In time the data collection for the other assets such as parks and reserves, cemeteries and buildings will be improved and included in future strategies. The Council is at i. water supply: present preparing asset management plans for parks and reserves, cemeteries and buildings and ii. sewerage and the treatment and disposal of sewage: this strategy does not address these other activities. iii. stormwater drainage: iv. flood protection and control works: INFRASTRUCTURE PERFORMANCE Generally, the portfolio of assets owned and managed by the Buller District Council is v. the provision of roads and footpaths; and performing appropriately for the Levels of Service agreed with the community. (b) any other assets that the local authority, in its discretion, wishes to include in the There are small communities where reliability is key, and a limited service is acceptable. this is a strategy.” challenge for Council to balance, particularly for water quality. Examples of this are the number of schemes where communities are hands-on operators and the 2015 decision of the Karamea CORE INFRASTRUCTURAL ASSETS community against establishing a community water supply. These communities are determined and have a culture of being self-sufficient. The core Buller District Council Infrastructure Assets are tabled below: Table 2.2: Buller District Infrastructure Assets There is currently (2018) a national focus on drinking Asset Description Replacement Value % of total water management and this is an ongoing and important Water Water extraction, $60.95m 14% conversation for Council and the treatment and Buller community. With several distribution schemes having no form of Sewerage Wastewater $49.73m 11% treatment or disinfection, and collection, treatment three schemes on permanent and discharge boil water notices, changes are imminent. Two schemes need Stormwater Stormwater collection $21.95m 5% more certainty over ownership and discharge before action is taken to improve Roads and Roads (arterial, $304.81m 70% the water treatment system. footpaths collectors, local; curbs and gutters), bridges, footpaths Council remains committed to work with the Buller communities around safe drinking water requirements within community affordability constraints. TOTAL $437.44m 100%

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Stormwater networks are limited and provide a satisfactory service most of the time. However, once rainfall exceeds moderate levels and outfalls are affected by floodwaters or tides, DEMOGRAPHIC CHANGES performance is hampered. In Westport, long term decisions around flood protection led by The population of the district is reasonably stable and is now predicted to remain stable. This the West Coast Regional Council will override localised stormwater issues.Council is continuing differs from three years ago when a decline was expected. There is an increasing number of to liaise with the West Coast Regional Council regarding Westports flood protection from the visitors to the area, and this creates different demands on assets, particularly peak loading. Buller River, coastal protection, and any subsequent stormwater system installation Council may require. This integrated approach is currently in the investigation phase, with analysis reports The council is maintaining assets at present to ensure that they are functioning, with renewals being undertaken. Potential design directions have not been finalised and as such any costing kept as low as possible. of potential future work would be speculative. Dependant on design decisions a future Buller DC Infrastructure Strategy may include additional stormwater capital expenditure for Westport. NEW TECHNOLOGIES The reticulation serving communities varies in age as development occurred within the Clearly over the thirty-year period of this strategy be some huge advancement in technology townships. This information as well as condition is being gathered and recorded in the computer that affect the demand for infrastructure and the methodology for infrastructure provision. based asset management system. The renewal programmes that have been developed in the While there will be progressive improvements overall that can be considered, disruptive asset management plan are developed taking into account the criticality of the pipe, as well as technologies are highly unpredictable. The roll-out of high speed internet is welcomed across age, condition and material. Reticulation renewal is required in a timely manner to ensure pipes Buller district, and this will provide greater opportunities for remote businesses to develop, and provide the level of service required. others to advance their use of technology. It is noted that only 9% of water pipe reticulation and 2% of wastewater pipe reticulation are In preparing this strategy while we are aware that there will be advancement we have by asbestos cement pipe, and as a result asbestos cement pipe is not considered to be a material necessity based our projections and maintenance costs on the methods that in use today. issue in the management of Councils pipe reticulation. With the road and footpath network, resilience is the primary focus. The local and state highway ECONOMIC CHANGE networks operate as one, with economic, social and tourist activity reliant on the ‘one roading network’. With an underpinning economy of mining and developing agriculture and tourism sectors, Buller economy is very prone to external influences. New opportunities are developing and Performance issues with the local network are not having a significant impact on the economy there is a positive outlook. BDC is mindful that infrastructure investments must be ‘in-tune’ with or the districts communities. The capability of the network including bridges is the main the current economy and future opportunities unfolding. performance issue that requires consideration. Keeping up with maintenance and renewal work remains vital to preserve the asset and provide a satisfactory level of service.

EMERGING ISSUES The task of building, operating and maintaining these infrastructure assets in an affordable manner is becoming increasingly difficult in view of: Demographic changes Environmental impacts and climate change Economic Change Continually changing legislative environment (Central & Regional Government) Infrastructure resilience Denniston Aging of infrastructure Other community infrastructure

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Denniston

CHANGING GOVERNMENT PRIORITIES AND LEGISLATIVE ENVIRONMENT The government’s priorities for infrastructure are discussed in the National Infrastructure Plan (2015); the vision in the document is: By 2045 New Zealand’s infrastructure is resilient and coordinated and contributes to a strong economy and high living standards. The key responses, which local government are partner to are: Increasing understanding of levels of service and future drivers of demand. Strengthening asset management. Ensure that we have the right settings to make decisions in the future. The impacts from the Havelock North Water Inquiry are significant and wide ranging including but not limited to the way the water service is delivered, managed, operated, maintained, monitored and reported on. The Inquiry recommends significant legislative changes relating to potable water. Along with the requirements of the Resource Management Act and the Local Government legal requirements, the Regional Council’s requirements as outlined in the Land and Water Plan are expected to involve higher levels of compliance. Further change is expected as regional Councils implement the National Policy Statement on Freshwater Management.

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ENVIRONMENTAL IMPACTS AND CLIMATE CHANGE Coastal erosion is a long-term natural hazard that affects the West Coast of New Zealand in Severe storms and resulting flooding is a particular concern for the Westport township located particular due to the prevailing wind conditions. Significant erosion can occur due to storm on the banks of the Buller River. Flooding puts lives at risk as well as causing significant damage events, throughout New Zealand to homes and infrastructure such as stormwater systems and roading. One asset affected by coastal erosion that is within Council’s responsibility is the Westport The New Zealand government has been looking at the natural hazards issue for a long time now. Airport. Protection works have been undertaken to ensure the airport remains in service. Loss With the potential risk of increased frequency and magnitude of severe storms in the future due of the airport would be significant for the area in terms of economic activity and transport to climate change, the government will be taking the lead. They have provided some direction resilience. to local government on this. In the meantime the Buller District Council is working with the other West Coast councils and the West Coast Regional Council on strategies for managing natural hazards, and the issue of longer term climate change adaption and mitigation.

Ngakawau Surface flooding at Carters Beach (February 2018)

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INFRASTRUCTURE RESILIENCE COMMUNITY ASSETS Customers have a high expectation of continuing functionality and service delivery. While The community looks to Council to help maintain its links to the past and provide for its future communities are resilient themselves, they are reliant on services provided to support they long wellbeing. At times this involves Council expanding its assets portfolio to includes assets that term wellbeing. As the impact of risks such as coastal erosion, earthquakes and floods are better would otherwise be lost or not provided at all. Providing venues for Government agencies and understood, there is an opportunity to identify better infrastructure management other services such as medical centres are becoming more common in provincial New Zealand. Resilience is based on a design philosophy which acknowledges that failure will occur at some Until 2018, the Westport harbour was a commercial operation under Buller Holdings Limited, a point in time. Resilience requires early detection and recovery, but not necessarily through re- holding company of the Buller District Council. Council is now undertaking a transition to direct establishing the failed system through maintenance or capital works. control. Buller District Council has undertaken a thorough analysis of resilience issues relating to natural Until July 2016, Holcim NZ Ltd was the principal port user. In 2013 Holcim announced the disasters and the managing and mitigating the risks to, and the resilience of, our infrastructure closure of its Westport plant in favour of silo facilities in Timaru and Auckland taking imported assets from natural disasters. This is discussed in the Buller District Council Lifelines Assets cement from Japan. The MV Westport took the final load of Cape Foulwind cement from the port Report (August 2017), and has also informed the level of insurance Council holds against natural on the 29th of June 2016. disaster events. The port is currently in another stage of evolution, its international facilities have ceased and In all renewal projects the resilience of the design and materials being used is a factor when there is a greater focus on the harbour function. Council’s role in the harbour is expected to determining designs and construction methods. include a new asset management approach to the harbour, which is likely to be discussed in a future Infrastructure Strategy. AGING INFRASTRUCTURE The infrastructure was constructed as the various communities were established. From that time the Councils have maintained the systems and replaced or renewed when higher maintenance costs indicated that it was timely. As the townships developed the infrastructure was extended either by the Local Authority or by developers. This strategy defines in some detail the effect of the aging infrastructure and the timelines for installation. Details of the infrastructure to be replaced will continue to be refined as more data on condition is collected and entered into the asset management data base. Buller District must carefully manage its investment in infrastructure to ensure it gets value for every dollar and provide infrastructure in a lawful, functional and affordable manner.

Westport Harbour

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ASSUMPTIONS The following assumptions are a subset of those developed for the 2018-28 Long Term Plan. Those that relate to the long term provision of infrastructure are discussed below. Table 2.3: Significant Assumptions Significant Assumptions Risk & Impact Roading & Urban Development New Zealand Transport Agency Funding: The New Zealand Transport Agency (NZTA) financial assistance rate provided to Councils roading That the Government will reduce the subsidy available to Councils programmes is currently 63% for Local Roads and 100% for assistance for the Karamea Highway which is Any decrease in NZTA funding will require Council to make a decision of whether to a Special Purpose Road (SPR). increase funding from rates, reduce service levels, remove projects from the Long NZTA advised Council that the FAR rate for local roads will be further increased by 1% each year for the Term Plan or apply a mix of these options. next 3 years from 64% to 66% in year 2020/2021. This means levels of funding will not increase to take account of rising costs of At the same time the review requires all financial assistance for roading programmes to be judged in providing the service. Therefore service levels in roading will reduce, this will be terms of the new One Network classifications. particularly evident in higher road roughness levels, maintenance of low volume rural roads and a reduction in vegetation control including mowing. This Long Term Plan assumes that the local roads financial assistance rate will increase to 66% until the end of 2020/2021 financial year and the drop back to 61% for the 2021/2022 and it will continue at that rate for the rest of the term of the Long Term Plan. A similar assumption is made that the Special Purpose Road. The 100% financial assistance rate will continue until the end of the 2020/2021 year and will then revert back to State Highway status for the rest of the Long Term Plan. The Long Term Plan also assumes that the present levels of service applied to the District’s roads will not be materially different from any new levels established by the One Network classifications. The consequence of these assumptions is that (before inflation) the cost of roading to the ratepayer will be fairly stable. Karamea Special Purpose Road: NZTA have indicated to the Buller District Council that it is proposed that the Karamea Special Purpose Road Financial assistance rate may reduce will lose its designation and revert from 100% subsidy to the Buller District Council’s financial assistance rate If the financial assistance rate reduces Karamea Highway will revert to a State of 66%, with a three year phase-in period. Highway. In examining the unquantifiable risk associated with the long term maintenance of the Karamea Special Purpose Road, the financial risks associated with this proposal are considered be to beyond the financial resources of Buller District Council’s ratepayers to fund. At this stage we have assumed that the Karamea Highway revert back to State Highway status from 2021/22.

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Significant Assumptions Risk & Impact One Network Roading Classification A joint initiative between the New Zealand Transport Agency and Local Government New Zealand has Financial assistance provision may reduce depending on the levels of funding agreed introduced a road classification system for all roads in New Zealand. The classification system aims: to be provided by NZTA yy to deliver similar driving experience across New Zealand. Council will be faced with two choices: yy to support more consistent asset management across the Country. 1. Change the current level of service provided to that set by NZTA yy to make collaboration and prioritisation between those organisations responsible for the planning, delivery, operation and maintenance of the nation’s roading network, leading to a more efficient and 2. Fund the difference between the current service level and that proposed by NZTA safer network and improved value for money. from ratepayer contributions This will introduce different levels of service across roads of different classification. Council has assumed that there will be no change in the levels of service currently provided. There will be no subsidisation of footpath and cycling facilities by the New Zealand Transport Agency No policy change is expected beyond tourism development, therefore footpath and cycling facilities are rates funded No significant upgrades are required for the increased population Following a review of likely population and demographic changes throughout the district, it is not expected that the increased usage due to population growth will be significant requiring roading network upgrades. It is believed that there is adequate capacity in the current network for any future growth. It is expected that new roads will be built by developers during the subdivision process There are currently no resource consents required for stormwater discharges from roading and there is no The low volumes of traffic on Council roads and the passage of road run off through specific treatment of the stormwater currently required grass berms or grass swales minimises any environmental impact Water Supplies It has been assumed that there will be no significant change to current water demand from any of the Following a review of population and demographic growth throughout the district Council water supplies little change is expected so risk of under overcapacity is low. It is assumed that the conditions of Resource Consents held by the Council (requirements and costs) There is a risk that consent conditions will change or that consent will not be will remain at similar to current levels and that Council will obtain the necessary Resource Consents for obtained for the Council projects. There is a risk of future changes to consent planned projects requirements as a result of the implementation of National Policy Statements, and Changing expectations from customers or future legislation changes may affect the appropriateness of Freshwater Management legislation. If consent conditions change, expenditure may existing consents increase to comply with the conditions and this may have an impact on water supply revenue (rate) requirements. If consents cannot be obtained for planned projects, the project may be delayed or may not proceed Assistance will be available through the Ministry of Health to provide financial assistance to all Council However it should be noted that there can be no certainty regarding the receipt of water supplies where treatment upgrades have been provided for the subsidy from the Drinking Water Assistance Programme (DWAP) and should the subsidy not materialise, there would need to be consultation with the community and the decision to upgrade or not would be based on affordability and legislative requirements. Council has made application to the Ministry of Health for funding assistance for the upgrade of the There is a risk that scheme upgrades will be mandated and timeframes will require Waimangaro water supply. Solutions for other small supplies are still under consideration. local funding for these upgrades

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Significant Assumptions Risk & Impact Wastewater/sewerage It has been assumed that there will be no significant capacity change required for infrastructure to meet to Following a review of likely population and demographic growth throughout the demands district little change is expected so risk of under overcapacity is low. Resource Consents will be renewed for Westport sewerage for emergency discharge There is a risk this consent will not be renewed in a timeframe or with conditions that will cause a response from council that is not budgeted for. Resource consent to discharge primary treated and untreated sewage effluent to Buller River during storm There is a risk from 2023 if this is not approved that further separation of sewer and overflow events was for 20 years from date of issue July 2003 stormwater in Westport will be required. However the flat grades on many of the sewers will require flushing devices if all stormwater is to be removed Stormwater It has been assumed that there will be no significant growth in urbanised area requiring stormwater Following a review of likely population and demographic changes throughout the reticulation. The only area identified for stormwater reticulation is the North Beach area of Westport district little change is expected so risk of under overcapacity is low. Westport is a town only 2 metres above sea level which provides some issues for stormwater collection Council is currently investigating the possibility of installing additional stormwater and discharge. One of the longer term requirements will be to install pumps on stormwater outlets to systems, specifically a large pump station to pump stormwater over the river stop reduce areas of surface flooding banks. Similar designs are currently deployed in Greymouth and Palmerston North. Further investigation, modelling, and design work will be required given the potential impacts of this possible system. These systems can have complex secondary effects on existing stormwater systems and stormwater flows. Preliminary estimates are in the range $0.5 million to $1 million. Council has chosen not to proceed with the system. Future versions of the Infrastructure Strategy will further consider options. Assumptions Relating to all Activities Disasters: It is assumed that there will be limited events during the term of this Plan, but that these events will not be That there is a significant natural disaster in the District, such as flooding, earthquake significant. or fire Council had adequate insurance to cover natural disasters. However, in the event of a significant event Council will need to re-evaluate its work programme and implement disaster recovery plans. Climate Change: Council uses the Ministry for the Environment (MFE) guidelines set out in “Coastal Hazards and Climate Climatic events might lead to increased costs for Council in both responding to Change 2017” for estimating Sea Level Rise (SLR). events and building greater resilience into infrastructure Climate change is likely to increase the magnitude of some hazards, therefore it is important to incorporate risk management in the design of infrastructure supporting new developments to maintain the same level of service throughout the design lifetime. The design of infrastructure for land development and subdivision needs to provide for the impact of sea level rise and the increased frequency of extreme weather events. Council has budgeted for protection of infrastructure in this plan.

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Significant Assumptions Risk & Impact Inflation/Price Changes: In preparing the Long Term Plan Council has utilised the inflation factors as provided by Business and There is likely to be some variation in the actual rates of inflation from those assumed Economic Research Limited (BERL) to be the inflation factors uses to escalate expenses. and this will impact on the financial results of Council. If the variances are significant, Council may need to consider either increasing or decreasing rates and charges or the levels of services for activities. This would be considered through the Annual Plan process. Escalation has been undertaken using the BERL indices. Useful lives of significant assets: Council has made a number of assumptions about the useful life of its assets. These assumptions affect That the lives of assets are materially different from those contained within the Plan. the depreciation charge contained within the Plan. The detail for each asset category is reflected in the If the life of the assets are materially different from those contained within the Plan, Statement of Accounting Policy. Council’s assets depreciation rates are contained within of the Statement the asset values stated in the prospective balance sheet and the profit contained of Accounting Policies. in the prospective statement of financial performance would be affected. If the life was shorter than expected then Council might need to replace the asset sooner than planned and this would need to be funded. Council has a long history of managing assets and has asset management practices in place which reduce the likelihood of assets being very different to projections. Significant Asset Condition: Council understanding of condition of its assets underpins the renewal forecasts in the Long Term Plan That condition information is not a sufficiently accurate representation of the actual (and also the significant lives of assets discussed above). Council has sufficient information about the condition of assets. condition of its assets to forecast their probable replacement periods. However, further more detailed If the asset condition is substantially worse than expectations then there is an information is desirable to further reduce the risk that actual condition varies from the assumed condition. increased risk of unexpected asset failure and the increased costs of repairing assets would need to be funded. These costs are not in the Long Term Plan and Council would need to consider how they should be funded - higher rates, use of cash reserves or debt would be options.

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LINKAGE WITH OTHER DOCUMENTS THIRTY YEAR STRATEGY The following diagram illustrates the Infrastructure Strategy Linkages with other documents in In its role as Local Authority Buller District Council will comply with the relevant New Zealand the Asset Management and Strategic Planning Context. legislation, while the following Strategic Statements will guide decision-making over the next 30 years. Figure 3.1: Infrastructure Strategy- Linkages with other Documents These statements have been derived from Council’s Community Outcome Statements and Draft Long Term Plan Community Outcomes are the goals that Council wants to achieve for the Community. They reflect what the Community sees as important for its well-being and they help to build up a picture of the collective vision for the District’s future. The outcomes guide decision-making by Council. The Council links its activities and services back to the outcomes. Table 5.1: Strategic Statements Strategy # Strategic Statements 1 Wellbeing: a vibrant, resilient, healthy & safe community with access to quality facilities & service 2 Learning: a district that values & supports learning with accessible, relevant education & training opportunities 3 Who we are: a ‘happening’ region with a strong community spirit & distinctive lifestyle 4 Sustainable Environment: the distinctive character of the environment appreciated & retained 5 Prosperity: a thriving, resilient and innovative economy creating opportunities for growth & employment

APPLYING THE STRATEGIC STATEMENTS TO INFRASTRUCTURE PLANNING Wellbeing: A vibrant, healthy & safe community with access to quality facilities & service Infrastructure provision actions discussed in this strategy that support this statement include: yy Provide access to quality amenities for physical activity (roading and footpaths) yy Quality drinking water (water supply) yy Number of traffic accidents (roading and footpaths) yy Improved safety in public places (roading and footpaths) yy Emergency Management Programmes and preparedness (all)

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Learning: A district that values & supports learning with accessible, relevant education The main challenges identified included socio-demographic factors: ageing population, & training opportunities retaining our youth in the region, increasing socio-economic issues in the community, Infrastructure provision actions discussed in this strategy that support this statement geographical isolation and spread; natural hazards, reliance on a few major employers & include: industries and public perception of our district and region. yy Provide access to quality amenities for physical activity (roading and footpaths) It is important that we recognise that successful communities have a balance of offerings that when combined provide a district that is attractive as a place, to work, live, invest and visit and is ‘fit for the future.’ This includes: Who we are: a ‘happening’ region with a strong community spirit & distinctive lifestyle yy Resilient and reliable public infrastructure and transport options Infrastructure provision actions discussed in this strategy that support this statement include: yy Schools that strive to provide the best quality education and consistently aim to turn out high achievers yy Provide access to quality amenities for physical activity (roading and footpaths) yy Fit for purpose health facilities and social services yy Improved safety in public places (roading and footpaths) yy First class leisure and recreational facilities and opportunities yy Strong and connected social networks and public spaces that facilitate this Sustainable Environment: the distinctive character of the environment appreciated & yy A resilient diversified economy that avoids the boom and bust cycles of the past retained Provided that there is a vibrant and flexible local economy that provides jobs there is no reason Infrastructure provision actions discussed in this strategy that support this statement why the population should not stabilise or even grow. The key to creating a more diversified and include: sustainable economy and attracting people to our district to live, work, invest and visit is all of yy Provide access to quality amenities for physical activity (roading and footpaths) the factors above plus the reinvention of ourselves as a district and to change the often negative yy Improved safety in public places (roading and footpaths) perceptions of the past. As part of the Westport Revitalisation project that kicked off in 2016-17 the question that was investigated was what are the unique selling points of our district that yy Emergency Management Programmes and preparedness (all) form part of our ‘story’ and point us to where we need to go. Three things came out of this process: Prosperity: a thriving, resilient and innovative economy creating opportunities for growth & employment 1. We offer a world class back country biking experience– this is not only through the Old Ghost Road, we also have the tracks being developed in Reefton, the proposed Kawatiri Infrastructure provision actions discussed in this strategy that support this statement Coastal Trail and other trails than are available for biking/cycling. This lends itself well to include: Westport and Reefton becoming biking ‘hubs’ yy Provide access to quality amenities for physical activity (roading and footpaths) 2. We have the wildest Backyard in NZ –87% of our land is in the DOC estate, we have beach yy Quality drinking water (water supply) and riverside towns, two national parks in our district and all the recreational and leisure yy Emergency Management Programmes and preparedness (all) opportunities that go with this. This aligns well with the award winning regional brand ‘Untamed Natural Wildness’ The Organisations’ Priorities 3. We are generous and entrepreneurial – During the 7 day makeover it was noted that ‘Fit for Future’ Westport had the highest level of volunteer participation and donated goods and services of any town large or small who had participated in this process. As a district we have a number The theme of ‘Fit for Future’ runs through the 2018-2028 Long Term Plan and this Infrastructure of technology and innovation start-ups. Continuing to attract and nurture entrepreneurs Strategy. Buller District Council is aware of the role of infrastructure in providing the basic needs and innovators is vitally important to our future of residents and underpinning economic activity. Alongside a commitment to affordability, this infrastructure strategy will guide Councils investment in future infrastructure. All these things paint a picture of what ‘fit for future’ could look like. Council’s role achieving our vision is primarily as a facilitator. It should provide reliable, affordable services and infrastructure When Council reviewed the current Long Term Plan and its strategy amongst other things that meet the community’s needs, help develop attractive towns and a district that people will it carried out a SWOT and PESTLE analysis (an evaluation of Buller’s strengths, weaknesses, want to visit and reside in. And finally Council’s role as an advocate cannot be understated. Our opportunities and threats and a range of factors which could have an effect on the district). district requires its share of regional development to be successful now and in the future and to It became apparent that the Buller has a lot going for it, as well as a number of challenges. help transformation into modern attractive locations with all the quality services that are now On the plus side we have resilient communities, cheap land and housing, abundant natural expected in 21st century communities. Council will also work closely with other Coast councils resources, unique natural assets and environment and endless recreational choices. and DWC to ensure that high speed Broadband access to the internet becomes available across the district along with comprehensive mobile phone connectivity.

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This means Council needs to continue to invest in infrastructure assets. Over the life of this Buller District Council’s lifecycle management approach is relatively straightforward with a plan Council expects to spend $53m to maintain the level of service we currently have and to priority on security of service and resilience. Condition monitoring is undertaken to refine modernise our towns if the district is to be truly competitive as a place to live and work and play. renewal programmes. Systems thinking is applied to maintenance works, to seek improved service delivery and reduce costs. As affordability will be an ongoing challenge, lifecycle Affordability is one of the key challenges that many Councils, including Buller, faces. In the past 3 management practice will be key to driving savings and works prioritisation. years leading up to this plan Council has demonstrated that it has been prudent in the allocation of is expenditure and has come well within its predictions of expenditure and the resultant rates The delivery of roading services relies heavily on the services of contractors. Outsourcing is increases. It also rates well in prudence measures by third party rates watchdog organisations. bundled as regular maintenance work requiring a local presence, or project type work that can be undertaken by a range of contractors who can undertake more finite works. For this LTP and IS to be sustainable it also needs to be affordable both in the short and long term and to continue with this philosophy. Looking at this LTP operating expenditure is prudent BDC’s Professional Services Unit play a key part in the delivery of serves as representatives of the and the resulting rates predictions are in the majority of case close to the benchmarks that asset owner (Council) and supervisor of contracts. The systems, processes and personal involved council has set. These benchmarks have been developed keeping affordability for communities are responsible for ensuring the deliverables provided by contracts (inputs) and transferred into at the forefront. the outputs and outcomes sought by Council. Council continually looks at ways that it can provide better services or provide the same service a different way at a cheaper cost to the ratepayer. Shared services (the new buzzword) with COST EFFECTIVE DELIVERY OF SERVICES other West Coast Councils are one way that costs can be saved. Council is doing this already In terms of section 10 (Purpose of local government) there is a clear requirement to meet the with information technology, insurance, finance, civil defence, processing of building consents current and future needs of communities for good-quality local infrastructure, local public and planning. There are ways that councils can work with other organisations to set up a tightly services,… in a way that is most cost-effective for households and businesses. focussed Economic Development service that will facilitate the desired economic diversification that Council believes it needs to make our district ‘fit for the future’. (2) In this Act, good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions, means infrastructure, services, and performance that are: (a) efficient; and (b) effective; and (c) appropriate to present and anticipated future circumstances In order to demonstrate that the delivery of services is efficient, effective and appropriate; Buller District Council has developed a procurement system which is based on providing fair payment for the delivery of services. Council has utilised a cost plus contract for all of its maintenance contracts with WestReef Services Ltd which is a Council owned entity. The Council uses the Reefton system thinking strategy to identify waste in both the delivery of the service and the manner in which the Council conducts its business. Service Delivery Reviews (LGA 2002 section 17a) are being undertaken for council activities to ASSET AND SERVICE MANAGEMENT STRATEGY assess their effectiveness and efficiency. A priority assessment has been undertaken which will Looking forward, Buller District Council’s approach will be a focus on maintaining its infrastructural guide the level of detail that will be included in the review. The results of these evaluations will assets to provide services in the most cost effective manner. This will be achieved through: be part of future LTPs. 1. Robust asset inventory information Council is increasing its collaborative and shared services approach. This is generally with other West Coast Local authorities with initiatives such as the common District Plan, funding 2. Improving knowledge about network demand and risks business cases for roading and Emergency Management. More integration of services should be 3. Planning and managing using a prioritised approach (greatest risks and or greatest benefits) expected, but without loss of local decision making and character. 4. Programming works based on priority and cost-effectiveness rather than ‘worst first’ 5. Seeking the best appropriate combination of maintenance and renewal work, accepting improvement may be limited 6. Acknowledging that currently levels of service may not sustainable across all services

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ADDRESSING RESILIENCE SIGNIFICANT DECISIONS REQUIRED There is a need to increase the sophistication of how we think about resilience, shifting Taking a long term view to the management of infrastructural Assets, Buller District Council beyond a narrow focus on shock events or infrastructure failure and thinking more about needs to make key decisions in a timely manner. In addressing Community desires and priorities interdependencies, levels of service and community preparedness. A longer-term view needs the following key decisions have been identified. to be taken with increased focus on adapting to slower changes over time, including climate change. The graphic over the page shows key elements of resilience. Importantly, increased Key Decision Indicative Timeframe resilience is not necessarily about making things stronger or investing more, and is quite often Water Supplies – Water Quality and Management 2018/19-2020/21 achieved by operational changes. Programme of upgrades required and the role of community Both physical and system resilience are crucial. This means: me members as operators y y Design and construction standards (where cost effective) that ensure infrastructure is able to Wastewater Consent - Westport Consent 408/2 discharge to 2020 (for 2021 LTP) withstand natural hazards and long term changes in circumstances such as those resulting river during storm overflow expires July 2023. from climate change. yy Organisations and networks of organisations with the ability to identify hazards must share Stormwater improvement and addition of SW Pump Station at 2021/22 following WCRC information, assess vulnerabilities, and plan for and respond to emergencies. Brougham Street flood protection decisions Bridge renewals and upgrades (timing and level of service to 2018/19-2044/45 Acknowledging the value of adaptability and redundancy in the network to improve business be provided) confidence. Special Purpose Road – options for future management 2018/19-2020/21 In order to improve resilience Council approach will be to: Decision prior to 2021/22- yy Actively participate in CDEM planning and activities, at both regional and local levels 2031/32 LTP yy Consider and action recommendations in Lifelines Reports yy Investigate options for alternative service provision and system redundancy yy Identify critical assets and ensure mitigation methods are developed SIGNIFICANT INFRASTRUCTURE ISSUES yy Obtain insurance where this is deemed to be the most cost effective approach The Local Government Act 2002 Amendment Bill Section 101B – Infrastructure Strategy states: (2) The purpose of the infrastructure strategy is to— “(a) identify significant infrastructure issues for the local authority over the period covered by the strategy; and “(b) identify the principal options for managing those issues and the implications of those options. In developing this 30 Year Strategy Council identified the anticipated significant infrastructure issues over the 30 years and considered each significant action and the benefits of the action. The significant infrastructure issues faced by Buller District Council with the benefits and costs are tabled below.

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WATER SEWERAGE Council’s goal for the water activity is: Council’s goal for the sewerage activity is: Council’s principal goal for water over the next ten years is: Council’s principal goal for wastewater over the next ten years is: “to provide an adequate supply of water that is of sufficient quality for household, agricultural, “to provide cost effective sewerage services for townships, as required by the community, and commercial and industrial use, which meets the current and future needs of the consumer, in a to continue investigations into minimising any adverse impact of effluent discharges into the cost effective manner.” environment.” Figure 6.1: Water Capital Projects (Inflated) Figure 6.2: Wastewater Capital Projects (Inflated)

Growth Growth LoS LoS Renew Renew

Issue What are we What is the Issue What are we What is the doing? benefit? doing? benefit? How much How will it cost? are When doing it we Growth LoS Renew How much How will it cost? are When doing it we Growth LoS Renew Drinking Upgrading Improve public $0.65m 2018/19 Consent is Develop joint Address issue No cost for 2021/22- Water Water health   to discharge approach of potential discussions 2022/23   needs to be Treatment primary through environmental improved Plants treated and multi-party and cultural to meet the untreated discussion impacts in Drinking Assumptions The upgrade will improve the quality of the drinking water. sewage an affordable Water Some expenditure commitment is still awaiting community decisions and during storm manner Standards may not proceed. overflow events Assumptions: It is assumed a decision is made on the preferred flood protection option and Ownership Determining Clarify Further Further the impact on stormwater management in Westport. of schemes is Councils role responsibilities consultation consultation unclear Inangahua and liabilities required required Junction scheme Assumptions: The will be a satisfactory solution available that balances legislative requirements and community views

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STORMWATER ROADS AND FOOTPATHS Council’s goal for the stormwater activity is: Council’s goal for the roads and footpaths activity is: Council’s principal goal for stormwater over the next ten years is: Council’s principal goal for roads and footpaths over the next ten years is: “to provide for the collection and disposal of stormwater to acceptable environmental standards.” “to provide and maintain a network of roads for the movement of vehicles, goods and people in a safe and efficient manner throughout the District in accordance with Council and NZTA standards.” Figure 6.3: Stormwater Capital Projects (Inflated) Figure 6.4: Roads (Local) Capital Projects (Inflated)

Growth Growth LoS LoS Renew Renew

Issue What are we What is the Issue What are we What is the doing? benefit? doing? benefit? How much How will it cost? are When doing it we Growth LoS Renew How much How will it cost? are When doing it we Growth LoS Renew Localised Building new Protection of $0.15m 2018/19 Special Negotiate Ensure this $0 2021 /22   flooding in stormwater property from  Purpose Road: for NZTA portion of Westport pump station flooding funding management the area is of the road as a sustainably Assumptions: The Brougham Street stormwater pump station will proceed following State Highway funded to investigation. ensure levels The mains renewals programme will be refined based on performance and condition. of service can be met Work Protection of collaboratively property from  Load Capacity Bridge Ensure $12.9m 2018/19 –   with WCRC flooding and Aging Replacements/ continuity 2047/48 to see flood Infrastructure upgrades of service protection to allow for in a reliable progressed 50MAX / manner. HPMVs Assumption: A coordinated approach to flooding in Westport will proceed, and that it will Increase provide a satisfactory level of protection for levels and business. capacity to allow for 50MAX Assumptions: The network (including bridges) will perform satisfactorily while a reduced load limit is enforced, until upgraded with some increased maintenance

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Issue What are we What is the doing? benefit? How much How will it cost? are When doing it we Growth LoS Renew Aging Resurfacing Maintain level $0.61m per 2018/19- Infrastructure of service annum 20/21  and asset preservation $0.49m per 2021/22 – annum 2047/48 Assumptions The resurfacing programme will be refined based on performance and condition Punakaiki SUMMARY OF SIGNIFICANT INFRASTRUCTURE ISSUES (February 2018) In 2015 the infrastructure strategy illustrated the key issues requiring an Infrastructure response as follows. In 2018, many of these issues remain pertinent, with water quality issues continuing and FINANCIAL ESTIMATES becoming increasingly important The LGA 2002 Section 101B – Infrastructure Strategy states: (4) The infrastructure strategy must outline the most likely scenario for the management OTHER INFRASTRUCTURE MANAGEMENT SCENARIOS of the local authority’s infrastructure assets over the period of the strategy and, in that context, must— CONSIDERED “(a) show indicative estimates of the projected capital and operating expenditure Given the current economic context, Buller District Council has three broad options in terms of associated with the management of those assets— infrastructure management and provision. 1. Reduce the level of spend; this would result in a decrease in the level of service, or an “(i) in each of the first 10 years covered by the strategy; and increased level of risk of sustainable asset performance. “(ii) in each subsequent period of 5 years covered by the strategy 2. Continue with the ‘current’ approach 3. Increase expenditure where investment in infrastructure may assist economic growth. Total Expenditure The projected capital expenditure associated with the significant infrastructure assets are Since 2015, the outlook for Buller district has improved and the population is relatively stable. graphically represented below. The five year blocks from 2028/29 to 2047/48 represented as Investment in infrastructure remains tight, but economic opportunities are being developed. annual average expenditure for the five year forecast period: Council is working more closely with the other councils in the region, such as a combined business for roading investment. Specific options are discussed under each activity area.

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COMBINED INFRASTRUCTURE FORECAST – CAPITAL WATER SUPPLY FORECAST (INFLATED) (INFLATED) The projected capital expenditure associated with the water infrastructure assets are graphically represented below: Figure 7.1: Projected Capital Expenditure - Infrastructure Assets Figure 7.3: Projected Capital Expenditure – Water

7.0

2.0 6.0 1.8

5.0 1.6

4.0 1.4

Millions 1.2 3.0 Renew 1.0 LoS 2.0 Millions 0.8 Growth

1.0 0.6

0.4

0.2 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2032/33 2037/38 2042/43 2047/48 2028/29 to 2033/34 to 2038/39 to 2043/44 to Water Wastewater Stormwater Roads (Local) Roads (SPR)

Note - SPR = Special Purpose Road 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2032/33 2037/38 2042/43 2047/48 2028/29 to 2033/34 to 2038/39 to 2043/44 to COMBINED INFRASTRUCTURE FORECAST - OPERATIONS & SEWERAGE FORECAST (INFLATED) MAINTENANCE (INFLATED) Figure 7.4: Projected Capital Expenditure – Sewerage Figure 7.2: Projected Operational Expenditure - Infrastructure Assets

2.0

1.8 25.0

1.6

1.4 20.0 1.2 Renew 1.0 15.0 LoS Millions 0.8 Growth

Millions 0.6 10.0 0.4

0.2 5.0 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2032/33 2037/38 2042/43 2047/48 2028/29 to 2033/34 to 2038/39 to 2043/44 to 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2032/33 2037/38 2042/43 2047/48 2028/29 to 2033/34 to 2038/39 to 2043/44 to Note LoS = Levels of Service Water Wastewater Stormwater Roads (Local) Roads (SPR)

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STORMWATER FORECAST (INFLATED) ROADS - SPECIAL PURPOSE ROADS FORECAST (INFLATED) Figure 7.5: Projected Capital Expenditure – Stormwater Figure 7.7: Projected Capital Expenditure – Roads, Special Purpose Roads

0.5 0.5

0.4 0.4

0.3 0.3 Renew Renew LoS LoS Millions Millions 0.2 Growth 0.2 Growth

0.1 0.1 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2032/33 2037/38 2042/43 2047/48 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 to 2033/34 to 2038/39 to 2043/44 to 2032/33 2037/38 2042/43 2047/48 2028/29 to 2033/34 to 2038/39 to 2043/44 to

ROADS AND FOOTPATHS - LOCAL FORECAST (INFLATED) Figure 7.6: Projected Capital Expenditure – Roads, Local and Footpaths

3.0

2.5

2.0

Renew 1.5 LoS Millions Growth 1.0

0.5 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2032/33 2037/38 2042/43 2047/48 2028/29 to 2033/34 to 2038/39 to 2043/44 to

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POLICIES

INCLUDES THE FOLLOWING FINANCIAL REPORTS:

Significance and Engagement Policy...... 173

Revenue and Financing Policy...... 176

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(a) the district or region: The council will consider the likely impact of the proposals INTRODUCTION or decisions on: (b) any persons who are likely to be particularly affected by, The Significance and Engagement Policy is one of the policies or interested in, the issue, proposal, decision or matter: yy The Buller district; and that the Local Government Act 2002 requires councils to have yy The people who are likely to be particularly affected by, or (c) the capacity of the local authority to perform its role, and (refer section 76AA, LGA 2002). The Buller District Council interested in, the matter; and the financial and other costs of doing so.” adopted the last Significance & Engagement policy on 1 yy The financial impact on the council’s overall resources; and December 2015. The policy has been updated as part of the “significant, in relation to any issue, proposal, decision or other y 2018-28 Long Term Plan. y The capacity of the council and its ability to perform its matter, means that the issue, proposal, decision, or other matter role, carry out its activities, ability to achieve its community The purpose of the policy is to provide councils with has a high degree of significance.” outcomes and provide for community wellbeing, now and guidance on how important or “significant” things they have in the future. to make decisions about are; and how much engagement or consultation they should have with the public about ABOUT SIGNIFICANCE them. This is also to ensure that council decision-making is The Act provides guidance and requirements on how councils Council uses the following thresholds as a guide to assess transparent and fair. The Act is specific about how council determine the significance of proposals and decisions on significance of any issue, proposal or matter and the level conducts consultation processes, to ensure the public have communities. Those potentially affected in communities of engagement: include: the public, sectors of the community, iwi, vulnerable their say about significant issues that may affect them and their yy Those that equate to more than 5% of the council’s asset groups in the community; organisations; and interest groups. communities. base or 5% of the councils budgeted turnover. Vulnerable groups include: the very young; the old; those less Section 76AA (2) of the LGA 2002 states: abled or in poor health; and those with limited means. yy Those that significantly alter the intended level of service provision for any significant activity. “(2) The purpose of the policy is - The council’s general approach is to identify the potential yy Those that reduce council income or increases rates. (a) to enable the local authority and its communities impact, i.e., the consequences of proposals and decisions yy To transfer ownership or control of a strategic asset to or to identify the degree of significance attached to on the community. Consequences depend on the likelihood from the council. particular issues, proposals, assets, decisions, and and frequency (i.e. how often) of the impacts occurring and activities; and the magnitude of those impacts. Significance ranges from Council will consider each criterion independently of the (b) to provide clarity about how and when low to high in a continuous spectrum, as show on Figure x.1. others. If an individual threshold is exceeded, council will deem communities can expect to be engaged in At one end there may be no consequences, or very few (low the matter as significant. decisions about different issues, assets, or other significance); at the other there may be major consequences matters; and (high significance). (c) to inform the local authority from the beginning of The significance generally mirrors the engagement required a decision-making process about - (discussed in more depth in the next section). Low significance (i.) the extent of any public engagement that is proposals and decisions generally require less engagement; expected before a decision is made; and and high significance requires high engagement, unless they are particularly contentious. (ii.) the form or type of engagement required.” The Act defines the key terms (Part 1, section 5, LGA 2002): “significance, in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in term of its likely impact on, and likely consequences for -

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Other criteria the council uses as a guide to assess any issue, proposal or matter and the level of engagement ENGAGEMENT ABOUT CONSULTATION include: Community engagement includes a wide range of things, Section 82 of the Local Government Act 2002 sets out yy Those that affect a large portion of the community. including consultation. Consultation is a common requirement principles of consultation for significant matters (refer yy The likely impact on interests of the community and future of many types of legislation, for example under the Resource Appendix 1). These include: generations, and recognising iwi cultural values and their Management Act. yy Access – Council providing reasonable access to relevant relationship to land and water. For the purposes of this policy, consultation is the genuine information in a manner people want in a form people can yy Those that are likely to generate a high degree of interest communication or exchange of information and points of view understand. or controversy in terms of the number of people, the area between decision-makers and the community, before council yy Encouragement – Council to encourage people to present potentially affected, and the duration of the impacts. makes the decision. It is a two-way interactive process that is their views. yy Whether the potential impacts are reversible. fair and transparent. yy Culturally appropriate – ensure appropriate processes are yy Where the financial implications, now or in the future, on in place for consulting with Māori. the council’s overall resources are substantial. TYPES OF ENGAGEMENT yy Clarity – Council to provide clear information about the yy Whether the community views are already known, including purpose of consultation and the scope of decisions the the preference of the community about the form of Types of engagement or communication the council uses council will take after considering the community views. include: engagement. yy Opportunity – Council to provide reasonable opportunity yy Where the form of engagement has been used in the past yy The council website www.bullerdc.govt.nz to present their views in a way that suits people’s needs and for similar matters. yy Social media such as Facebook preferences. Proposals and decisions with high significance are considered yy Announcements on the local radio stations yy Open-minded and Fair – Council to receive community on a case-by-case basis. The following section talks about yy Newsletters views with an open mind and to take due consideration of how the council engages with the community and receives yy Letters to ratepayers those views. their input before council makes decisions that may affect yy Posters and leaflets on community notices boards and in yy Transparency – Council to provide access to a clear record communities. community buildings or description of decisions made, with clear explanations of what they considered. Where a proposal or decision is considered significant the yy Public meetings council must have greater regards for the decision-making yy Workshops and roadshows provisions of the Local Government Act 2002 (refer s76-82). yy At Council meetings, during the public sessions WHEN COUNCIL MAY NOT CONSULT In particular this includes: yy Clinics or meetings with councilors and the mayor and or Access to information is always necessary for the decision- yy The extent to which different options are to be identified key staff. making process. However there are times when it is not and assessed. necessary, appropriate, or possible for the council to consult yy The degree to which benefits and costs are to be quantified. with the community, even if it is considered significant under this policy. The council will always engage with the community yy The extent of the detail of the information to be considered. on issues, to inform and educate. The Local Government Act, yy The extent and nature of any written record to be kept and other government acts related to official information set of the manner in which council has complied with these out very clear requirements for council to follow about when considerations. council must consult, and how; or when it may not. Such circumstances when council may not consult with the public or release official information are numerous and are set out in section 82 of the Local Government Act 2002 (refer Appendix 1). Some include: yy Where there has been previous consultation and / or the council is aware of community views. yy There is a need for confidentiality or commercial sensitivity. yy The costs of consultation outweigh the benefits of it. yy Where it may endanger the safety of any person.

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yy Buller Civil Defence Emergency Operations Centre and COUNCIL’S APPROACH TO STRATEGIC ASSETS related infrastructure. ENGAGEMENT Section 5 of the Local Government Act 2002 defines a strategic yy Flood protection works and infrastructure. asset: yy Reserves. Council’s approach to engagement includes the following yy Cemeteries. criteria: “strategic asset, in relation to the assets held by a local authority, means an asset or a group of assets that the local authority needs yy Libraries – Sue Thomson Casey Memorial Library, Reefton 1. The council will apply a consistent and transparent to retain if the local authority is to maintain the local authority’s Library. approach to engagement. capacity to achieve or promote any outcome that the local yy Museums. 2. When engaging with iwi, council acknowledges that authority determines to be important to the current or future well- yy Community and recreation facilities - NBS Theatre,Pulse face-to-face meetings are preferred. Other tools such as being of the community; and includes- Energy Centre, Reefton pool, community centres. Memoranda of Understanding, Heads of Agreements or (a) any asset or group of assets listed in accordance with other similar high level agreements or understandings section 76AA(3) by the local authority; and REVIEW OF THE POLICY may also be considered. (b) any land or building owned by the local authority and The Significance and Engagement Policy will be reviewed 3. Council is required to carry out consultation in required to maintain the local authority’s capacity to every three years to coincide with each Long Term Plan review accordance with section 82 of the Local Government Act provide affordable housing as part of its social policy; and process. 2002 on certain matters, regardless of whether they are (c) any equity securities held by the local authority in- considered significant as part of this policy (refer above). (i) a port company within the meaning of the Port 4. In all other cases council is required to undertake a Companies Act 1988: special consultative process, as set out in section 83 (ii) an airport company within the meaning of the of the Local Government Act. This also includes cases Airport Authorities Act 1966.” where the council deems a matter as significant that is inconsistent with this policy. Buller District Council’s strategic assets include the following things, systems and places. The council needs to retain these assets in order to maintain its capacity to achieve or promote its community outcomes for the current and future wellbeing of the community. Note a strategic activity or service is one that is associated with owning, operating, servicing or maintaining a strategic asset: yy Council’s land holdings portfolio. yy Council’s social housing portfolio. yy Council’s leasehold portfolio. yy Council buildings. yy Roading system - includes the land corridor, carriageway, footpaths, bridges, street lighting and off-street parking, and equipment. yy Water reticulation, storage and treatment systems – includes the land, pipes, pumps, reservoirs, treatment plants, and equipment. yy Waste collection, recycling, transfer stations, disposal sites - systems and aftercare systems. yy Public toilets and campervan waste receiving facilities. yy Westport Airport (jointly owned with the Ministry of Transport). yy Port of Buller.

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Background Section 102(4)(a) of the Local Government Act 2002 states that a local authority must adopt a revenue and financing policy. The revenue and financing policy must state: a) The local authority’s policies in respect of funding operating expenses from the sources listed. b) The local authority’s policies in respect of funding capital expenditure from the sources listed. Alternative funding sources: Local Government Act 2002 - S (103(2) The Funding Impact Statement from pages 124-134 provides detailed definitions, description and rating sectors for each of the targeted rates. yy General rates: which includes both a general (differential) rate and Uniform Annual General Charge (UAGC). yy The general rate is set and assessed on the land value of all rateable land in the district, on a differential basis based on location, area, land use and the activities that are permitted, controlled or discretionary for the area in which the land is situated as per the District Plan. yy The definition of the differential categories is set out in Section 6 of the Funding Impact Statement. yy Targeted rates yy Fees and charges yy Interest and income from investments yy Borrowings yy Proceeds from asset sales yy Development contributions yy Financial contributions under the Resource Management Act 1991 yy Grants and subsidies yy Any other sources

In considering which funding sources are appropriate for each activity, Council has considered (S(101(3)) of the Local Government Act: a) The promotion of community outcomes b) User/beneficiary pays – the distribution of benefits between the community as a whole, any identifiable part of the community and individuals c) Intergenerational equity – the period in or over which those benefits are expected to come d) Exacerbator pays – the extent to which the actions or inaction of particular individuals or groups contribute to the need to undertake the activity e) The costs and benefits of funding an activity in a different manner to the way other activities are funded, including consequences for transparency and accountability f) The overall impact on the current and future social, economic, environmental and cultural well-being of the community

Changes to Funding Mechanisms The only significant change in the policy was inclusion of a new activity for the Westport Harbour.

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Elected Statutory requirement Local yy All yy Ongoing All can be involved in Inangahua Operating: Representatives Government Act 2002 democratic representation community yy 100% general rates benefits through Local Electoral Act 2001 and Social cohesion and Capital: regulations community focus separate board of Four members plus yy No capital spend yy Community Planning The need for the Inangahua Liaison with central two Councillors and Consultation Community Board is created by the government Inangahua Community Democracy Governance Governance Structure for effective Equal access for all leadership, advocacy and accountable stewardship of the Council’s assets and resources yy Library service Supports lifelong literacy and yy Learning yy Ongoing Library facilities are Individuals who Operating: learning for different ages and needs. yy Who we are provided for the entire directly benefit yy 85-95% general rates Council’s provision of services allows community and enhance from the service yy 5-15% fees all residents the opportunity for Long term: wellbeing. taking out books Capital: yy Information service information, knowledge, recreation yy Library Better informed and Researchers yy Loans and leisure at a community facility. books educated community Libraries yy Library yy Investments Equal access to all buildings yy Depreciation reserves yy Grants yy Grants District Promotion and Marketing yy Prosperity yy Ongoing Improved economic Local business Operating: benefit of district yy District Marketing Agencies and Businesses yy Wellbeing yy 100% general rates yy Economic Capital: Development Economic Development yy Loans yy Depreciation

Community ServicesCommunity reserves and Marketing Economic Development Development Economic

yy Museums Funding for Museums and Heritage yy Wellbeing yy Ongoing Preserves important Community Operating: operations. cultural history. yy 100% general rates Capital: yy Loan yy Depreciation

Museum Funding reserves

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Swimming Pool at Users of facilities benefit from personal yy Wellbeing yy Ongoing Community benefits in Users of pool Operating: Reefton fitness and competition providing options for yy Learning Users of gym, yy 100% general rates people to exercise and yy Who are we pool and sports relieve the pressure on the Capital: recreational health system yy Loans facilities. yy Investments yy Community Centre Community benefits in at Reefton which providing options for yy Depreciation provides an indoor people to exercise and reserves community and relieve the pressure on the sports venue, and health system. gym facilities yy Pulse Energy The Pulse Energy Recreation Centre Enhanced health and well- Recreation Facilities Recreation Recreation Centre can be used to attract regional and being of community. in Westport, which national sporting events Opportunities for provides gym, pool recreation and leisure. and sports facilities Controlled safe environment for younger community. yy Live performance Theatre groups who use the theatre for yy Who are we yy Ongoing Facility that can be used Groups who need Operating: performances by all and enhances a venue for live yy 30-45% fees - user cultural well-being of performances. pays Community ServicesCommunity Theatre district. yy 55-70% general rates yy Movie goers Long Term: Overall public benefit. Residents who yy Land valuation want to watch yy School groups who yy Theatre Capital: Venue movies. use the theatre for yy Loans performances yy Depreciation Movies reserves yy Grants yy Investments yy Council Services Reefton residents who require access yy Who are we yy Ongoing Reefton residents and Individuals Operating: to services visitors to the area and businesses Long Term: yy 100% general rates requiring yy Building information Capital: Centre or transaction yy Depreciation reserves Reefton Service processing

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Postal Services Reefton residents who require access yy Who are we yy Ongoing Reefton residents and Individuals Operating: to services visitors to the area and businesses Long Term: yy 75-95% fees requiring postal yy 5-25% general rates yy Building agency information Office or transaction Capital:

Reefton Post Reefton Post processing yy Depreciation reserves yy Provision of grants Volunteer organisations and yy Who we are yy Ongoing Grants paid to Users of the Operating: individuals who want funding due to yy Learning organisations benefit services or facilities 90-100% general rates financial pressures the whole community provided by grant through improved recipients 0-10% grants facilities and cultural opportunities Capital: No capital spend

Community ServicesCommunity yy Vision 2010 rural Council recognises that our rural yy Prosperity yy Ongoing The Vision 2010 projects Users of the Operating: projects communities face particular yy Who we are are designed to support community 100% general rates challenges in continuing to provide local community facilities community services and facilities to initiatives to improve their local populations. The Vision community facilities and 2010 projects are designed to support projects that benefit local community initiatives to improve residents

Community Development and Support Development Community community facilities and projects that benefit residents. yy District Plan Council administers the responsibilities yy Sustainable yy Ongoing Entire district - Applicants for Operating: - framework, imposed under the Resource environment Regulations Monitoring Resource Consents Long Term: yy 90-95% general rates regulation Management Act (RMA) relating to benefits yy 5-10% fees and control of the use of land, air and water. This yy District Plan Contributes to the Capital: subdivisions and land function requires the administration of sustainable management yy Depreciation use. the operative District Plan. The RMA and development of the Act places specific statutory functions reserves Planning district resources and of on territorial authorities to promote benefit to district as a yy Loans the sustainable development of Regulatory Services whole Resource Management Resource natural and physical resources.

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Resource Consents Legislation - RMA yy Sustainable yy Ongoing Entire district - Applicants for Operating: environment Regulations Monitoring Resource Consents yy 5-10% general rates yy Wellbeing benefits. yy 90-95% fees Resource Consent Applicants There is also an Capital: element of benefit to yy Depreciation the whole district by reserves ensuring planning and Consents development is done yy Loans in a co-ordinated and

Resource Management Resource controlled manner. Monitoring enforcement of land use. Environment safeguards yy Building consents The Building Act 2004 places yy Prosperity yy Ongoing Benefit to the entire Individuals who are Operating: substantial statutory function yy Wellbeing district of having safe building yy 80-90% fees requirements on territorial authorities. buildings that comply yy 10-20% general rates The activity ensures buildings meet with regulations. the requirements of New Zealand Capital: Public health and Building Legislation. yy Depreciation wellbeing reserves To provide high quality safe solutions Building Control to the community for their building yy Loans needs yy Dog licensing Legislation below requires territorial yy Wellbeing yy Ongoing Entire district: Those with Operating: Regulatory Services authorities to enforce certain statutory dogs cause the - Complaint service yy 25% general rates functions regarding dog control: problems. yy 75% fees - Dog Control Act 1996 Long Term: - Public safety Capital: - Impounding Act 1955 yy Dog pounds yy Depreciation Animal control activities promote Individuals will reserves public welfare and safety have delegated yy Loans

Animal Control - Dogs Control Animal exercise areas for dogs. yy Stock control Legislation below requires territorial yy Wellbeing yy Ongoing Entire district Those with stock Operating: authorities to enforce certain statutory cause the problems - Complaint service yy 70-80% general rates functions regarding stock control. yy 20-30% fees - Public safety Stock Impounding Act 1955 Capital: Stock control activities promote public yy No capital spend Animal Control - Control Animal welfare and safety.

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Licensing of Legislation yy Wellbeing yy Ongoing Entire district benefits Individuals who Operating: premises from health and safety require certification - Food Hygiene Regulations 1974 yy Sustainable yy 65-75% fees Environment in business meeting of their businesses yy 25-35% general rates - Health Act 1956 standards Capital: The activity ensures the enforcement The community as a whole yy No capital spend of safety legislation to protect benefits through control members of our community from of infectious diseases Premises potential risk and monitoring of environmental standards. The community includes

Environmental Health - Food Health - Food Environmental local residents and visitors to the district yy Licensing of Premises Sale and Supply of Alcohol Act 2012. yy Wellbeing yy Ongoing Entire district - Regulated Individuals who Operating: opening times / venues require certification yy 75-90% fees Gambling Act 2003 Public health and safety of their businesses yy 10-25% general rates The activity ensures the enforcement Capital: of safety legislation to protect yy No capital spend members of our community from Liquor Licensing potential harm Environmental Health - Environmental

Regulatory Services yy Noise complaints This is driven by legislation via the yy Wellbeing yy Ongoing Health benefits from Promotion Operating: serviced Resource Management Act (RMA). reduced noise levels of a pleasant yy 90-95% general rates People are not allowed to make environment for yy 5-10% fees ‘excessive’ noise and must ensure that the community Capital: noise from their property does not No hazards from reach an ‘unreasonable’ level. Address yy No capital spend Health - Noise Environmental Environmental excessive noise nuisance activities levels yy Freedom camping This activity ensures compliance and yy Wellbeing yy Ongoing Provides control over Freedom camping Operating: and illegal littering enforcement of the Council regulations the impact of freedom does not clash with yy 90-95% general rates monitoring and and by-laws that control these camping within the other recreational yy 5-10% fees investigation activities. district. activities Capital: Ensures public spaces are No hazards from yy Depreciation litter free and pleasant litter. reserves environments for the - General Inspection Environmental Health Environmental public to enjoy.

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy General compliance This activity encompasses all other yy Wellbeing yy Ongoing It includes development Promotion Operating: compliance not detailed elsewhere in and review of compliance of a pleasant yy 100% general rates this policy. documents. environment for the community. Capital: yy No capital spend General Inspection Environmental Health - Environmental

yy Training of Civil This activity is fundamental to yy Wellbeing yy Ongoing Provides certainty and Individuals Operating: Defence staff and achieving community preparedness for assurance to public that requiring yy 100% general rates volunteers emergencies. There is a requirement Council are prepared to assistance during for this activity as per the Civil Defence meet impact of natural an emergency Capital: Regulatory Services yy Loans yy Civil Defence Emergency Management Act 2002. It disaster preparedness and ensures public safety and ensures that yy Depreciation response there are adequate plans to respond to reserves hazards, risks and emergencies. It also yy Investments ensures that there are sufficient trained personnel and response measures in Emergency Management place during an emergency. yy Parks Provides the community with yy Wellbeing yy Ongoing Use of parks is for public Users of parks and Operating: yy Sports grounds recreation facilities and relaxation enjoyment reserves facilities yy 90-100% general yy Reserves areas rates yy Playgrounds Long Term: yy 0-10% fees Create a pleasant environment for the yy Land Promotion of a pleasant yy Beach areas Capital: community. yy Playground environment for the equipment community. yy Reserve contributions Property Reserves Beauty and image of Buller district is enhanced yy Loans yy Depreciation Enhanced health and reserves wellbeing yy Investments

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Toilet facilities The provision of toilet facilities yy Wellbeing yy Ongoing Public - non-exclusivity Individuals using Operating: promotes the health and wellbeing of Health and wellbeing of facilities yy 100% general rates the district and environment. community Long Term: Capital: yy Buildings yy Loans yy Depreciation Public Toilets Public reserves yy Investments yy Interment facilities yy Burial and Cremation Act 1964 yy Wellbeing yy Ongoing Community as a whole Benefit for family of Operating: yy Cemetery reserve benefits from availability person interned yy 75-85% general rates yy Records enquiry of interment facilities yy 15-25% fees service Long Term: Availability of heritage Capital: yy Land records yy Loans

Cemeteries yy Depreciation reserves yy Investments yy Community halls yy Community and civic buildings yy Wellbeing yy Ongoing All benefit from public Groups using halls Operating:

Property provide for a diverse range of yy Who we are buildings yy 90-100% general community activities rates Long Term: yy 0-10% fees yy Buildings Capital: yy Loans yy Depreciation

Property - Community reserves yy Investments yy Housing for the Provision of housing for the elderly yy Wellbeing yy Ongoing Retaining the elderly Tenants renting Operating: Elderly assists our senior citizens to maintain yy Who we are within the community 100% fees their independence and remain in the which retains our social community Long Term: character and mix Capital: yy Buildings yy Loans Housing yy Depreciation

Elderly Persons Elderly Persons reserves yy Investments

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Port facilities Services fishing fleet vessels and yy Wellbeing yy Ongoing Provides a facility for the Individuals using Operating: recreation commercial vessels yy Prosperity district benefit the facility 40-60% general rates 40-60% fees Capital: Harbour yy Loans yy Depreciation reserves yy Property Management of leased land assists in yy Who we are yy Ongoing All benefit from return on Leasehold tenants Operating: Management of the effective maintenance of Council’s investment yy 100% fees leased property assets and facilities Long Term: Capital: yy Buildings yy Loans

Property yy Depreciation reserves Property - Private yy Investments yy Holiday park Provision of an area for both passive yy Wellbeing yy Ongoing All benefit from extra Customers using Operating: accommodation for and active recreation and enjoyment yy Who we are visitors and economic gain the facility yy 90-100% fees visitors yy 0-10% general rates Long Term: yy Buildings Capital: y

Ground y Loans yy Depreciation

Punakaiki Camping reserves yy Investments

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy Roads Local Government Act 2002 yy Wellbeing yy Ongoing Sustainability of the Individuals using Operating: community the transport yy Street lighting Road Controlling Authority yy Prosperity yy 34-36% general rates yy Footpaths network yy 64-66% NZTA yy Car parking spaces This activity ensures property access Long Term: subsidy and freedom of travel and supports yy Road yy 100% NZTA subsidy the sustainability of the community. construction for special purpose and roads (Karamea renewals Highway)

Roading Benefit from access to property and Capital: access to facilities yy General rates Improved safety of yy NZTA subsidy roads yy Investments yy Loans Roading and Transport yy Improving street and More pleasant environment for our yy Who we are yy Ongoing Promotion of a pleasant Improved Operating: landscape in towns communities by use of planting, street environment for the environment to yy 100% general rates treatment and decorative measures community residents and Long Term: tourists Capital: Urban yy Landscaping yy General rates yy Loans Development yy Investments yy Supply of water yy Community health, safety and yy Wellbeing yy Ongoing Supply of water for public Residents able to Operating: development. Provision of water toilets. be connected to yy 100% targeted rates supplies is a core function of Local Fire fighting supply. supply. yy Metered water Government Long Term: charges for major yy New users schemes / renewals Capital: yy Targeted rate yy Subsidies Water Supplies Water yy Loans yy Investments Community Water Supplies Water Community yy Depreciation reserves

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group ZONE 1 - Westport yy Necessary for the health and yy Wellbeing yy Ongoing Better environment Those using Operating: yy Provide waste quality of life in the community. collection the yy 80-95% targeted management Ensure that refuse is managed service rates disposal facilities and disposed of in an efficient and yy 5-20% other income sustainable manner. (fees and charges) Capital: yy Loans Public health yy Depreciation reserves yy Investments ZONE 2 - Karamea yy Necessary for the health and yy Wellbeing yy Ongoing Better environment Those using Operating: yy Provide waste quality of life in the community. collection the yy 80-95% targeted management Ensure that refuse is managed service rates disposal facilities and disposed of in an efficient and yy 5-20% fees and sustainable manner. charges Capital: Public health yy Loans Solid Waste yy Depreciation reserves yy Investments ZONE 3 - Maruia yy Necessary for the health and yy Wellbeing yy Ongoing Better environment Those using Operating: yy Provide waste quality of life in the community. Public health collection the yy 80-95% targeted management Ensure that refuse is managed service rates disposal facilities and disposed of in an efficient and yy 5-20% fees and sustainable manner. charges Refuse Collection & Recycling, Litter and Landfill Operations Refuse Litter Collection & Recycling, Capital: yy Loans yy Depreciation reserves yy Investments

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Landfill Operation reserves

Solid Waste districts natural and aesthetic values Public health yy Investments yy Litter collection Necessary for health and quality of life yy Wellbeing yy Ongoing in communities, and disposed of in an Litter efficient manner yy Disposal of sewerage Necessary for health and quality of life yy Wellbeing yy Ongoing Community health and Residents able to Operating: in the community wellbeing be connected to yy 100% targeted rates sewer yy Trade waste fees Long Term yy Disposal of trade Maintains sanitation Those disposing of Capital: waste yy New trade water schemes / yy Depreciation Sewerage renewals reserves yy Investments

Wastewater/Stormwater yy Loans yy Collect and transport Protection of property yy Wellbeing yy Ongoing Public health benefit Urban properties Operating: land drainage from benefit due to Health and safety as it reduces danger yy 100% general rates property density of roading from flooding Long Term Continuity of access to and footpaths Capital: yy New property yy Loans Drainage schemes /

Stormwater protection renewals Open drains in rural

Wastewater/Stormwater area

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ACTIVITY: What is the Rationale for service Community Period of Benefit Funding Mechanism Community getting Outcome benefit Effective: 1 July 2015 General Benefits Private Benefits Activity Activity Group yy General staff and yy Implement and support of all yy All yy Ongoing Benefits community at Overheads reallocated administration Council activities large to other activities services Long Term Capital: yy Office yy Depreciation Equipment reserves yy Loans Corporate ServicesCorporate yy Investments yy Computer systems yy Availability of information and yy All yy Ongoing Benefits community at Individuals Overheads reallocated yy Telecommunication systems to support all Council large accessing to other activities

Support Services networks activities and enable sound databases and decision making. Long Term information Capital: yy Computer yy Depreciation systems reserves yy Loans

Information Systems Information yy Investments yy Engineering Services yy Council access to engineering yy All yy Ongoing Benefits community at Overheads and internal services on a cost effective basis. large charges reallocated to other activities Capital: yy Depreciation Services reserves yy Loans In-House Professional In-House Professional yy Investments yy Airport Services yy Public Transportation yy Prosperity yy Ongoing Economic benefit to all yy Commercial / Operating: individual users Social and heritage value yy 75-80% fees benefit The balance is funded: Long Term yy Buildings yy 50% general rates yy Land yy 50% by the Crown

Airport Capital: yy Depreciation Westport AirportWestport reserves yy 50% funded by the Crown

Buller District Council | Draft Long Term Plan 2018-2028 189 Ratepayers are currently rated on a system that uses Land Values as the basis for General Rates Funding of Capital User charges are used for those services where there is a Borrowing is not generally used to fund operating expenses, Rates in all forms will be used to fund an ongoing replacement benefit to an individual. If it is possible to efficiently impose a but is used as a tool to smooth out major lumps in the capital programme and may be used to fund a portion of capital charge the Council does so, on the basis of either recovering replacement and acquisitions programme. The council may acquisition work. This will be balanced against the affordability the full cost of the service or a rate that the market will choose to borrow for an operating expense to give a grant to a for the current ratepayers and the extent to which a capital pay. The market rate can limit the potential for charging in community organisation that is building a community facility. replacement or acquisitions programme is even over the circumstances where the Council believes that a charge set too period of the plan. Over the period of the plan the council Income from dividends, interest and net rental income is high will adversely reduce use. will get to the point where asset renewals are being met from used to offset the cost of provision of other services. Income operating revenue, and also a contribution is being made to General rates are used to fund those services where the from interest and dividends is included as revenue in the levels of service and growth capital. council believes there is a public benefit even though it may investments and governance activity. This revenue is utilised not be to the whole community. It typically funds “public to reduce Council’s general rates income stream.. Income from Borrowing will be applied to capital works subject to the goods” for which there is no practical method for charging rental of property is applied to the activity which is the primary preceding statement on the use of rates. The council views individual users as the benefit is wider than just specific users. user of a facility, if the property does not have a primary use debt as a smoothing mechanism and a means of achieving General rates fund a range of services which are used by but is held for commercial or strategic purposes the rental is equity between time periods, however the council does not individual ratepayers to varying extents. The council uses the included investments and governance activity, and is applied have an unlimited capacity to borrow and the community does general rate rather than a number of targeted rates in order to general purposes. not have unlimited capacity to service those loans into the to achieve a simpler rating structure. That simpler structure future. Therefore, the council adopts a prudent approach to Licence fees are charged where they are available as a makes it easier for ratepayers to understand how they are debt and its capital programme to ensure that the burden of mechanism. They are set as for user charges but may have being rated and it is also simpler and cheaper to administer. debt and the interest cost does not place an impossible burden constraints on the level of the fee. These constraints are Rates are regarded as a tax which funds the collective on the community. In doing so the council is conscious of its established under various legislation. community benefit rather than be any form of proxy for use of peak debt and its ongoing funding stream for debt servicing a service. Differentials are only used to ensure that other rates Enforcement fees are charged when possible. The purpose of and work programme. mechanisms do not alter the incidence in rates between the the fee is to promote compliance rather than to raise revenue, In the early years of the plan the council is borrowing to major rate payer groups at times enforcement fees will recover the full cost and at other fund asset renewals. This is being done to achieve a balance times it will not depending on the level of compliance and also Targeted rates are also used to fund community benefits between the level of rates rises and the sustainability of service the extent to which the charges are limited by statute or the and wider public goods. A targeted rate means a rate to be levels. In the later years of the plan the council achieves courts. used exclusively to pay for that operating expense. It is used sustainable funding and borrows for part of the level of service in circumstances where the council believes that the benefits and growth capital works. This is outlined in the Funding from the services are such that the principles of a general rate Impact Statement (pages 124-134). approach (noted above) are not sufficient and that they should Proceeds from asset sales may be used to fund capital works be targeted to a particular beneficiaries group. It is also used or repay debt. The preferred option will be for debt repayment where the council considers that the level of charge is outside with any new works funded from new debt draw down. This council’s control and the extent of the rate should be clear to method is favoured due to its transparency and the neutral the community. effect it has on rating. There is no major planned asset sales Grants and subsidies are used where they are available. programme over the period of this plan, but assets which are no longer required for strategic or operational purposes may be sold.

190 Buller District Council Draft Long Term Plan 2018-2028

Westport Office 6-8 Brougham Street PO Box 21 Westport 7866 New Zealand Freephone 0800 807 239 Ph: 64 3 788-9111 Fax: 64 3 788-8041

Reefton Office & Library 66 Broadway PO Box 75 Reefton 7851 New Zealand Freephone 0800-808-821 Ph: 64 3 732-8821 Fax: 64 3 732-8822

Sue Thomson-Casey Memorial Library 87-89 Palmerston Street Westport 7825 New Zealand Ph: 64 3 788-8030 Fax: 64 3 788-8147

Email: [email protected] www.bullerdc.govt.nz/long-term-plan